Intermediate Accounting

Question 2: [8 marks] Use the following information to answer questions (1-4) Natalie Co. sells its $900,000 of 10% bonds, dated January 1, 2020, on May 1, 2020, bonds mature in five years. The interest is paid semiannually (July 1, and January 1). Natalie Co prepares its financial statement at December 31 each year. The bonds yield 12%, selling for $833,760. Answer Question 1- What is the cash amount to be received from bond's purchasers at May 1, 2020? 2- What is the interest expense for 2020? Answer Question 3- write the required entry at December 31, 2020. 4- write the required settlement entry at maturity date