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Can somebody help with the bonds payable and interest expense reported. Thank You! On June 30, 2020, Blossom Limited issued $2 million of 20-year, 13%
Can somebody help with the bonds payable and interest expense reported. Thank You!
On June 30, 2020, Blossom Limited issued $2 million of 20-year, 13% bonds for $2,320,916, which provides a yield of 11%. The company uses the effective interest method to amortize any bond premium or discount. The bonds pay semi-annual interest on June 30 and December 31. Your answer is correct. Prepare the journal entries to record the following transactions: (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 1. The issuance of the bonds on June 30, 2020 2. The payment of interest and the amortization of the premium on December 31, 2020 3. The payment of interest and the amortization of the premium on June 30, 2021 4. The payment of interest and the amortization of the premium on December 31, 2021 Date Account Titles and Explanation Debit Credit June 30, 2020 Cash Bonds Payable Dec. 31, 2020 Interest Expense Bonds Payable Cash June 30, 2021 Interest Expense Bonds Payable Cash Dec. 31, 2021 Interest Expense Bonds Payable Cash eTextbook and Media List of Accounts 2320916 127650 2350 127521 2479 127385 2615 2320916 130000 130000 130000 Your answer is partially correct. Show the proper presentation for the liability for bonds payable on the December 31, 2020 SFP. (Round answer to O decimal places, eg. 5,275.) Blossom Limited Statement of Financial Position (Partial) December 31, 2020 Long-term Liabilities Bonds Payable 313472 eTextbook and Media List of Accounts * Your answer is incorrect. What amount of interest expense is reported for 2020? Interest expense to be reported $ 382556 e Textbook and Media List of Accounts Your answer is correct. What is the total cost of borrowing over the life of the bond? (Round answer to O decimal places, e.g. 5,275.) Total cost of borrowing over the life of the bond 4879084 eTextbook and Media List of AccountsStep by Step Solution
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