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On January 1, 2020, Kingbird Inc. sold 10% bonds having a maturity value of $700,000 for $727,227, which provides the bondholders with a 9% 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.

QUESTIONS:

A) Prepare the journal entry at the date of issue.

B) Prepare a schedule of interest expense and bond amortization for 2020 through 2023.

C) Prepare the journal entries to record the interest payment and the amortization for 2020.

D) Prepare the journal entries to record the interest payment and the amortization for 2022.

On January 1, 2020, Kingbird Inc. sold 10% bonds having a maturity value of $700,000 for $727,227, which provides the bondholders with a 9% 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. 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.) Account Titles and Explanation Debit Credit Date Jan. 1, 2020 Prepare a schedule of interest expense and bond amortization for 2020 through 2023. (Round answers to 0 decimal places, e.g. 5,275.) Schedule of Interest Expense and Bond Premium Amortization Effective Interest Method Debit Debit Credit Interest Bonds Cash Expense Payable Carrying Amount of Bonds Date $ $ 1/1/20 1/1/21 1/1/22 1/1/23 Prepare the journal entries to record the interest payment and the amortization for 2020. (Round answers to o 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 Jan. 1, 2021 Prepare the journal entries to record the interest payment and the amortization for 2022. (Round answers to o 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, 2022 Jan. 1, 2023