Question
On January 1, 2020, Blossom Company sold 12% bonds having a maturity value of $600,000 for $645,489, which provides the bondholders with a 10%
On January 1, 2020, Blossom Company sold 12% bonds having a maturity value of $600,000 for $645,489, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Blossom Company allocates interest and unamortized discount or premium on the effective-interest basis. Your answer is correct. Prepare the journal entry at the date of the bond issuance. (Round answer to O decimal places, eg. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation January 1, Cash 2020 Premium on Bonds Payable Bonds Payable eTextbook and Media List of Accounts Debit 645489 Credit 45489 600000 Your answer is partially correct. Prepare a schedule of interest expense and bond amortization for 2020-2022. (Round answer to O decimal places, e.g. 38,548.) Cash Datel Paid 1/1/20 Schedule of Interest Expense and Bond Premium Amortization Effective-Interest Method Interest Expense Premium Amortized Amo $ 12/31/20 72000 64549 7451 12/31/21 72000 63804 8196
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started