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Need help with the journal entries. Thanks Problem 14-05 In each of the following independent cases, the company closes its books on December 31. Your
Need help with the journal entries. Thanks
Problem 14-05 In each of the following independent cases, the company closes its books on December 31. Your answer is partially correct. Try again. Sunland Co. sells $483,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021. 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 o decimal places, e.g. 38,548.) Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield Cash Paid Interest Expense Discount Amortized Carrying Amount of Bonds Date 3/1/20 456038 9/1/20 24150 27362 3212 459250 3/1/21 24150 27555 3405 462655 ! 9/1/21 24150 27759 3609 466264 3/1/22 24150 27976 3826 470090 v! 9/1/22 24150 28205 4055 474145 M 3/1/23 24150 28449 4299 478444 9/1/23 24150 28706 4556 483000 Prepare all of the relevant journal entries from the time of sale until December 31, 2021. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to o decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Prepare all of the relevant journal entries from the time of sale until December 31, 2021. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to o decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation 3/1/207 Cash 456038 Discount on Bonds Payable 26962 Bonds Payable 483000 [9/1/20 Interest Expense 27362 Discount on Bonds Paya 3212 Cash 24150 12/31/20 Interest Expense 18370 Discount on Bonds Paya 2270 Interest Payable 16100 3/1/21 Interest Expense 9185 x Discount on Bonds Payable 1135 rrrrrrrrr X X Interest Payable 8050 Cash 24150 9/1/21 Interest Expense 27759 Discount on Bonds Paya 3609 Cash 24150 > 12/31/21 Interest Expense 18651 Discount on Bonds Paya 2551 Interest Payable 16100Step by Step Solution
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