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On January 1, 2020, Blue Company acquires $220,000 of Spiderman Products, Inc., 10% bonds at a price of $214,624. Interest is received on January 1
On January 1, 2020, Blue Company acquires $220,000 of Spiderman Products, Inc., 10% bonds at a price of $214,624. Interest is received on January 1 of each year, and the bonds mature on January 1, 2023. The investment will provide Blue Company a 11% yield. The bonds are classified as held-to-maturity. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answers to decimal places, eg. 2,500.) Schedule of Interest Revenue and Bond Discount Amortization Straight-line Method Bond Purchased to Yield Cash Interest Bond Discount Received Revenue Amortization Carrying Amoun of Bonds Date 1/1/20 $ $ $ $ 1/1/21 1/1/22 1/1/23 e Textbook and Media List of Accounts Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the effective-interest method. (Round answers to decimal places, eg. 2,500.) Schedule of Interest Revenue and Bond Discount Amortization Effective-Interest Method Bond Purchased to Yield Cash Interest Bond Discount Received Revenue Amortization Carrying Amoun of Bonds Date 1/1/20 $ $ $ 1/1/21 1/1/22 1/1/23 e Textbook and Media List of Accounts (c) Prepare the journal entry for the interest revenue and discount amortization under the straight-line method at December 31, 2021 Prepare the journal entry for the interest revenue and discount amortization under the effective interest method at December 31, 2021. (d) (Round answers to O decimal places, eg. 2,500. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) . No. Account Titles and Explanation Debit Credit c (c) (d)
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