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I cant get part c) Question 7 On January 1, 2020, Teal Mountain Inc. sold 14% bonds having a maturity value of $840,000 for $900,563,
I cant get part c)
Question 7 On January 1, 2020, Teal Mountain Inc. sold 14% bonds having a maturity value of $840,000 for $900,563, which provides the bondholders with a 12% 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. (a) Your answer is correct. Prepare the journal entry at the date of issue. (Round answers to O 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 o for the amounts.) Debit Credit Date Account Titles and Explanation Jan. 1, 2020 TCash 900563| Bonds Payable 900563 Your answer is correct. Prepare a schedule of interest expense and bond amortization for 2020 through 2023. (Round answers to o decimal places, e.g. 5,275.) Schedule of Interest Expense and Bond Premium Amortization Effective Interest Method Debit Debit Interest Bonds Expense Payable Credit Cash Carrying Amount of Bonds Date 1/1/20 1/1/21 900563 117600 108068 9532 891031 117600 106924 10676 880355 1/1/22 1/1/23 2 117600 105643 11957 T 868398 (c) Your answer is partially correct. Try again. 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 o for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31, 2020 Interest Expense 108068 TBonds Payable 9532 I Interest Payable 1 117600 Jan. 1, 2021 T Bonds Payable Interest Expense 9532Step by Step Solution
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