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I need help with the Bond Amortization Schedule and journal entries (calculations for a discount). Can you please provide steps/work? In each of the following
I need help with the Bond Amortization Schedule and journal entries (calculations for a discount). Can you please provide steps/work?
In each of the following independemt cases, the company closes its books on December 31. Sweet Co. sel ls $467,000 of 10 % bonds on March 1, 2017. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2020. The bonds yield 12 % . Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to 0 decimal places, e.g. 38,548.) Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield Carrying Expense AmortizoAmount of Bonds Cash Paid Interest Date 3/1/17 440,951 23,350 9/1/17 3,107 26,457 444,058 26,643 23,350 3/1/18 3,293 447,351 9/1/18 23,350 26,841 3,491 450,842 3/1/19 23,350 27,051 3,701 454,543 27,273 9/1/19 23,350 458,466 3,923 3/1/20 23,350 27,508 462,624 4,158 23,350 9/1/20 27,757 4,407 467,031 Prepare all of the relevant journal entries from the time af sale until the date indicated. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final an "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 3/1/17 3/1/18Step by Step Solution
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