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Question: Testbank Problem 127 Marigold Corp. issued $5,040,000 of 8%... Testbank Problem 127 Marigold Corp. issued $5,040,000 of 8% bonds on October 1, 2020, due on October 1, 2025. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective annual interest. Marigold Corp. closes its books annually on December 31. Complete the following amortization schedule for the dates indicated. Use the effective-interest method. (Round answers to 0 decimal places, e.g. 5,275.) Cash Interest Expense Bond Discount Carrying Amount of Bonds $4,650,807 Date October 1, 2020 April 1 2021 October 1, 021 SHOW LIST OF ACCOUNTS Prepare the adjusting entry for December 31, 2021. Use the effective- interest method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Dec 31 SHOW LIST OF ACCOUNTS Compute the interest expense to be reported in the income statement for the year ended December 31, 2021. Interest expenses Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS Show transcribed image text Anil Mittal answered this 5,430 answers Was this answer helpful? Please hit LIKE button if this helped. Date Cash Interest Expense 5% Bond Discount Carrying amount Oct 1 2020 Apr 1 2021 Oct 1 2021 $ $ 201,600 $ 201,600 $ 232,540 $ 234,087 $ $ 30,940 $ 32,487 $ 4,650,807 4,681,747 4,714,235 Dec 31, 2021 $ 117,856 Interest Expense ($4,714,235*5%*3/6) Discount on Bond payable Interest Payable ($201,600/2) $ $ 17,056 100,800 Interest Expense in 2021 Income Statement: $232,540/2 Jan-March April-October Nov-March Interest Expense $ $ $ $ 116,270 234,087 117,856 468,213