| | Exercise 14-11 On January 1, 2020, Windsor Inc. sold 14% bonds having a maturity value of $760,000 for $786,731, which provides the bondholders with a 13% yield. The bonds are dated January 1, 2020, and mature on January 1, 2025, with interest payable on January 1 of each year. The company follows IFRS and uses the effective interest method. | | | | | Prepare the journal entry at the date of issue. (Round answers to 0 decimal places, e.g. 5,255. 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 0 for the amounts.) | Date | Account Titles and Explanation | Debit | Credit | | Jan. 1, 2020 | enter an account title for the journal entry on January 1 | enter a debit amount | enter a credit amount | | | enter an account title for the journal entry on January 1 | enter a debit amount | enter a credit amount | | | | | | Prepare a schedule of interest expense and bond amortization for 2020 through 2023. (Round answers to 0 decimal places, e.g. 5,275.) | Schedule of Interest Expense and Bond Premium Amortization Effective Interest Method | | Date | | Credit Cash | | Debit Interest Expense | | Debit Bonds Payable | | Carrying Amount of Bonds | | | 1/1/20 | | | | | | | | $enter a dollar amount | | | 1/1/21 | | $enter a dollar amount | | $enter a dollar amount | | $enter a dollar amount | | enter a dollar amount | | | 1/1/22 | | enter a dollar amount | | enter a dollar amount | | enter a dollar amount | | enter a dollar amount | | | 1/1/23 | | enter a dollar amount | | enter a dollar amount | | enter a dollar amount | | enter a dollar amount | | | | | | | Prepare the journal entries to record the interest payment and the amortization for 2020. (Round answers to 0 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 0 for the amounts.) | Date | Account Titles and Explanation | Debit | Credit | | Dec. 31, 2020 | enter an account title for the journal entry on December 31 | enter a debit amount | enter a credit amount | | | enter an account title for the journal entry on December 31 | enter a debit amount | enter a credit amount | | | enter an account title for the journal entry on December 31 | enter a debit amount | enter a credit amount | | Jan. 1, 2021 | enter an account title for the journal entry on January 1 | enter a debit amount | enter a credit amount | | | enter an account title for the journal entry on January 1 | enter a debit amount | enter a credit amount | | | | | | Prepare the journal entries to record the interest payment and the amortization for 2022. (Round answers to 0 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 0 for the amounts.) | Date | Account Titles and Explanation | Debit | Credit | | Dec. 31, 2022 | enter an account title for the journal entry on December 31 | enter a debit amount | enter a credit amount | | | enter an account title for the journal entry on December 31 | enter a debit amount | enter a credit amount | | | enter an account title for the journal entry on December 31 | enter a debit amount | enter a credit amount | | Jan. 1, 2023 | enter an account title for the journal entry on January 1 | enter a debit amount | enter a credit amount | | | enter an account title for the journal entry on January 1 | enter a debit amount | enter a credit amount | | | | | | | Question Attempts: 0 of 5 used | | SAVE FOR LATER | SUBMIT ANSWER | | | | |
