Carry Blossom Co. sells $400,000 of 6% bonds on March 1, 2020. The bonds pay interest...
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Carry Blossom Co. sells $400,000 of 6% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 9%. Give entries through December 31, 2021. Construct an amortization table and prepare all of the relevant journal entries from the time of sale. (Hint: Refer to Chapter 3 for tips on calculating and use the calculations from the financial calculator for the journal entries.) (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final 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. Record journal entries in the order presented in the problem.) Schedule of Bond Discount Amortization Cash Paid Date 3/1/20 9/1/20 $ +A 3/1/21 9/1/21 3/1/22 9/1/22 3/1/23 9/1/23 A Effective-Interest Method Interest Expense +A Discount Amortized +A Carry Blossom Co. sells $400,000 of 6% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 9%. Give entries through December 31, 2021. Construct an amortization table and prepare all of the relevant journal entries from the time of sale. (Hint: Refer to Chapter 3 for tips on calculating and use the calculations from the financial calculator for the journal entries.) (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final 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. Record journal entries in the order presented in the problem.) Schedule of Bond Discount Amortization Cash Paid Date 3/1/20 9/1/20 $ +A 3/1/21 9/1/21 3/1/22 9/1/22 3/1/23 9/1/23 A Effective-Interest Method Interest Expense +A Discount Amortized +A
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