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On January 1, 2018, Loop Raceway issued 680 bonds, each with a face value of $1,000, a stated interest rate of 7 percent paid annually
On January 1, 2018, Loop Raceway issued 680 bonds, each with a face value of $1,000, a stated interest rate of 7 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 8 percent, so the total proceeds from the bond issue were $662,454. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare a bond amortization schedule. 2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 99 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 to 5 Prepare a bond amortization schedule. Changes During the Period Ending Bond Liability Balances Period Ended Cash Paid Discount Amortized Interest Expense Bonds Payable Discount on Bonds Payable Carrying Value PS 1750 s 6624541 $ (644908) 01/01/18 12/31/18 $ 47,600 47,600 12/31/19 47,6001 47,600 47.600 5,849 5,849 5,849 5.84 12/31/20 yeyunu Levent, LLU JUSTO L U CU. View transaction list View journal entry worksheet Credit No 1 Date Jan 01, 2018 Debit 662,454 General Journal Cash Discount on Bonds Payable Bonds Payable 2 Dec 31, 2018 Interest Expense Discount on Bonds Payable Cash Dec 31, 2019 Interest Expense Discount on Bonds Payable Cash Dec 31, 2020 Interest Expense Discount on Bonds Payable Cash 5 Jan 01, 2020 Bonds Payable Gain on Bond Retirement Cash
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