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On January 1, 2020, Coronado Company purchased 10% bonds having a maturity value of $420,000, for $453,537.42. The bonds provide the bondholders with a 8%

On January 1, 2020, Coronado Company purchased 10% bonds having a maturity value of $420,000, for $453,537.42. The bonds provide the bondholders with a 8% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Coronado Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. estion 6 of 8

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On January 1, 2020, Coronado Company purchased 10% bonds having a maturity value of $420,000, for $453,537.42. The bonds provide the bondholders with a 8% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Coronado Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.

(a)

Correct answer iconYour answer is correct.

Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, e.g. 2,525.25. 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 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

Jan. 1, 2020

enter an account title to record the transaction on January 1, 2020

enter a debit amount

enter a credit amount

enter an account title to record the transaction on January 1, 2020

enter a debit amount

enter a credit amount

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List of Accounts

Attempts: 2 of 3 used

(b)

Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.)

Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method

Date

Cash Received

Interest Revenue

Premium Amortized

Carrying Amount of Bonds

1/1/20

$enter a dollar amount rounded to 2 decimal places

$enter a dollar amount rounded to 2 decimal places

$enter a dollar amount rounded to 2 decimal places

$enter a dollar amount rounded to 2 decimal places

1/1/21

enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 2 decimal places

1/1/22

enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 2 decimal places

1/1/23

enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 2 decimal places

1/1/24

enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 2 decimal places

1/1/25

enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 2 decimal places

enter a dollar amount rounded to 2 decimal places

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