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On December 31, 2020, Addition Elle Connections issued 9%, 10-year bonds payable with a maturity value of $580,000. The semi-annual interest dates are June 30
On December 31, 2020, Addition Elle Connections issued 9%, 10-year bonds payable with a maturity value of $580,000.
The semi-annual interest dates are June 30 and December 31 .
The market interest rate is 10%, and the issue price of the bonds is 93.7759 .
Addition Elle Connections amortizes bonds by the effective-interest method.
Requirement 1.:
Prepare an effective-interest-method amortization table for the first 4 Semi-annual Interest periods.
2. Journalize the following transactions:
a. Issuance of the bonds on December 31, 2020. Credit Bonds Payable.
b. Payment of interest and amortization of the bonds on June 30, 2021
C.Payment of interest and amortization of the bonds on December 31, 2021
3. Show how Digital Connections would report the remaining bonds payable on its balance sheet at December 31, 2021
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