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Need some help on this question and its due today. Nash Co.sells $397,000 of 12% bonds on June 1, 2020. The bonds pay interest on
Need some help on this question and its due today.
Nash Co.sells $397,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 8%. On October 1, 2021, Nash buys back $127,040 worth of bonds for $132,040 (includes accrued interest). Give entries through December 1, 2022. 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 decimal places, e.g. 38,548.) Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield Cash Paid Interest Expense Premium Amortized Carrying Amount of Bonds $ 23820 $ $ Prepare all of the relevant journal entries from the time of sale until December 31, 2022. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answers to decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 6/1/20 Cash Premium on Bonds Payable Bonds Payable 12/1/20 Interest Expense Premium on Bonds Payable Cash 12/31/20 Interest Expense Premium on Bonds Payable Interest Payable 6/1/21 Interest Expense Interest Payable Premium on Bonds Payable Cash Cash 10/1/21 Interest Expense Premium on Bonds Payable Cash (To record interest expense and premium amortization) 10/1/21 Bonds Payable Premium on Bonds Payable Gain on Redemption of Bonds Cash (To record buy back of bonds) 12/1/21 Interest Expense Premium on Bonds Payable Cash 12/31/21 Interest Expense Premium on Bonds Payable Interest Payable 6/1/22 Interest Expense Interest Payable Cash 12/31/21 Interest Expense Premium on Bonds Payable Interest Payable 6/1/22 Interest Expense Interest Payable Premium on Bonds Payable Cash 12/1/22 Interest Expense Premium on Bonds Payable Cash Step by Step Solution
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