Question
On Jan 1, 2024, Ponasis Corporation issued $2.5M, 10-year Bonds. The bonds pay semi-annual interest on July 1 and Jan 1, and Ponasis has a
On Jan 1, 2024, Ponasis Corporation issued $2.5M, 10-year Bonds. The bonds pay semi-annual interest on July 1 and Jan 1, and Ponasis has a Dec 31 year end. Below is the partial amortization table for the bond. The bond was RETIRED on Jan 2 2027 at 98. Was the bond issued at a Premium or Discount? Find the missing values (1) to (5) and prepare Journal Entries when the Bond was issued, the first interest payment, and its retirement. Date Jan 1 2024 Jul 1 2024 Jan 1 2025 Jul 1 2025 Jan 1 2026 Jul 1 2026 Jan 1 2027 Interest Payment 62,500.00 (3) 62,500.00 62,500.00 62,500.00 62,500.00 Expense (2) 53,920.00 53,748.00 53,573.00 53,394.00 53,212.00 Amortization 8,412.00 8,580.00 8,752.00 (4) 9,106.00 9,288.00 7 Carrying Amount (1) 2,695,981.00 2,687,401.00 2,678,649.00 (5) 2,660,616.00 2,651,328.00
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