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i got few entries wrong and i missing discount on bonds payable on the first picture can anyone help me please On January 1, 2018,
i got few entries wrong and i missing discount on bonds payable on the first picture can anyone help me please
On January 1, 2018, Surreal Manufacturing Issued 670 bonds, each with a face value of $1,000, a stated interest rate of 3 percent pald annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market Interest rate was 4 percent, so the total proceeds from the bond issue were $651.410. Surreal uses the effective Interest bond amortization method and adjusts for any rounding errors when recording Interest in the final year. Required: 1. Prepare a bond amortization schedule. 2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the Interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 102 Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 to 5 w Prepare a bond amortization schedule. (Round your answers to the nearest whole dollar. Make sure that the Carrying value equals face value of the bond in the last period. Interest expense in the last period will result in the amount in Discount Amortized equaling Discount on Bonds Payable.) Changes During the Period Ending Bond Liability Balances Period Interest Discount Bonds Discount on Carrying Cash Paid Ended Expense Amortized Payable Bonds Payable Value 01/01/18 IS 670,000 $ 18,590S 651.410 12/31/18 26,056 20,100 5,950 670.000 670,000 12/31/19 26,295 20.100 6,195 870.000 670,000 12/31/20 26.542 20,100 6,442 870,000 670,000 Reg 2 to 5 > No General Journal Debit Credit Date Jan 01. 2018 1 Cash Discount on Bonds Payable Bonds Payable OOO 651,410 18,590 870,000 2 Dec 31, 2018 Interest Expense 26,056 Cash Discount on Bonds Payable olol 20,100 5,950 3 Dec 31, 2019 Interest Expense 26,295 > Cash Discount on Bonds Payable 20.100 6.194 ho 4 Dec 31, 2020 Interest Expense 26.542 Cash Discount on Bonds Payable 20,100 X 8.442 5 Jan 01, 2020 870.000 19,842 % Bonds Payable Loss on Bond Retirement Cash Discount on Bonds Payable OOO 883,400 8,442 Step by Step Solution
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