Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

General Autoparts Inc. issued $190,000 of 5%, 10-year bonds at a price of 90 on January 31, 2020. The market interest rate at the date

image text in transcribedimage text in transcribed

General Autoparts Inc. issued $190,000 of 5%, 10-year bonds at a price of 90 on January 31, 2020. The market interest rate at the date of issuance was 8%, 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 A B. D E Interest Payment Interest Expense Bond Discount Bond Discount Bond Semi-annual (2.5% of Amortization Account Balance Carrying Amount (4% of Preceding Bond Carrying Amount) Interest Date Maturity Value) (B - A) (Preceding D-C) ($190,000 -D) Jan. 31, 2020 July 31, 2020 4750 4750 Jan. 31, 2021 July 31, 2021 4750 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 hands on my 31 2020 (Record debits first then credits Fynlanations 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. Explanations are not required. 2. Recora Generals issuance of the ponas on January 31, 2020, ana payment or the first semi-annuai 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 2020 Accounts Debit Credit July 31 Choose from any list or enter any number in the input fields and then continue to the next

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Hotel And Restaurant Accounting

Authors: Cole Raymond

8th Edition

0866125531, 9780866125536

More Books

Students also viewed these Accounting questions

Question

What do their students end up doing when they graduate?

Answered: 1 week ago