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General Autoparts Inc. issued $100,000 of 3%, 10-year bonds at a price of 91 on January 31, 2020. The market interest rate at the date
General Autoparts Inc. issued $100,000 of 3%, 10-year bonds at a price of 91 on January 31, 2020. The market interest rate at the date of issuance was 6%, and the standard bonds pay interest semi-annually. 1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. 2. Record General's issuance of the bonds on January 31, 2020, and payment of the first semi-annual interest amount and amortization of the bonds on July 31, 2020. Explanations are not required. 1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. (Round your answers to the nearest whole dollar.) General Autoparts Amortization Table B D E Interest Payment Bond Discount Bond Discount Bond Semi-annual (1.5% of Interest Expense (3% of Preceding Bond Carrying Amount) Amortization Account Balance Carrying Amount ($100,000 - D) Interest Date Maturity Value) (B-A) (Preceding D-C) Jan. 31, 2020 July 31, 2020 Jan. 31, 2021 Choose from any list or enter any number in the input fields and then continue to the next question. General Autoparts Inc. issued $100,000 of 3%, 10-year bonds at a price of 91 on January 31, 2020. The market interest rate at the date of issuance was 6%, and the standard bonds pay interest semi-annually. 1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. 2. Record General's issuance of the bonds on January 31, 2020, and payment of the first semi-annual interest amount and amortization of the bonds on July 31, 2020. Explanations are not required. Amortization Table A B D E Interest Payment Bond Discount Bond Discount Bond Semi-annual Interest Expense (3% of Preceding Bond Carrying Amount) Amortization (1.5% of Maturity Value) Account Balance Carrying Amount ($100,000 - D) Interest Date (B-A) (Preceding D-C) Jan. 31, 2020 July 31, 2020 Jan. 31, 2021 July 31, 2021 2. Record General's issuance of the bonds on January 31, 2020, and payment of the first semi-annual interest amount and amortization of the bonds on July 31, 2020. (Record debits first, then credits. Explanations are not required.) Choose from any list or enter any number in the input fields and then continue to the next question. General Autoparts Inc. issued $100,000 of 3%, 10-year bonds at a price of 91 on January 31, 2020. The market interest rate at the date of issuance was 6%, and the standard bonds pay interest semi-annually. 1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. 2. Record General's issuance of the bonds on January 31, 2020, and payment of the first semi-annual interest amount and amortization of the bonds on July 31, 2020. Explanations are not required. 2. Record General's issuance of the bonds on January 31, 2020, and payment of the first semi-annual interest amount and amortization of the bonds on July 31, 2020. (Record debits first, then credits. Explanations are not required.) Start by recording the issuance of bonds on January 31, 2020. Journal Entry 2020 Accounts Debit Credit Jan. 31 Now, record the payment of the first semi-annual interest amount and amortization of the bonds on July 31, 2020. Journal Entry Choose from any list or enter any number in the input fields and then continue to the next question. General Autoparts Inc. issued $100,000 of 3%, 10-year bonds at a price of 91 on January 31, 2020. The market interest rate at the date of issuance was 6%, and the standard bonds pay interest semi-annually. 1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. 2. Record General's issuance of the bonds on January 31, 2020, and payment of the first semi-annual interest amount and amortization of the bonds on July 31, 2020. Explanations are not required. Jan. 31 Now, record the payment of the first semi-annual interest amount and amortization of the bonds on July 31, 2020. Journal Entry 2020 Accounts Debit Credit July 31
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