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On January 1, 2017, Pearl Company sold 12% bonds having a maturity value of $370,000 for $398,051, which provides the bondholders with a 10% yield.
On January 1, 2017, Pearl Company sold 12% bonds having a maturity value of $370,000 for $398,051, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2017, and mature January 1, 2022, with interest payable December 31 of each year. Pearl Company allocates interest and unamortized discount or premium on the effective-interest basis.
Prepare the journal entry at the date of the bond issuance. (Round answer to O de entered. Do not indent manually.) Account Titles and Explanation Date Debit January 1, 2017 Prepare a schedule of interest expense and bond amortization for 2017-2019. (Rour Schedule of Interest Expense and Bond Premium Amortization Effective-Interest Method Carrying Amount of Bonds Cash Paid Interest Expense Premium Amortized Date 12/31/17 12/31/18 12/31/19 Prepare the journal entry to record the interest payment and the amortization for 2017. (Round answer to indented when amount is entered. Do not indent manually.) Account Titles and Explanation Credit December 31, 2017 Prepare the journal entry to record the interest payment and the amortization for 2019. (Round answer to indented when amount is entered. Do not indent manually.) Account Titles and Explanation Date Debit Credit December 31, 2019Step by Step Solution
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