On January 1, 2020, Culver Corp. acquires $310,000 of Spider Products Inc. 8% bonds at a price of $287,273. The interest is payable each December 31, and the bonds mature on December 31, 2022. The investment will provide Culver Corp. with a 11% yield. Culver Corp. applies IFRS and accounts for this investment using the amortized cost model. Prepare a three-year bond amortization schedule. (Round answers to O decimal places, e.g. 5,275.) Schedule of Interest Income and Bond Discount Amortization Effective Interest Method Cash Received Interest Income Bond Discount Amortization Carrying Amount of Bonds Date 01/01/20 12/31/20 $ 12/31/21 12/31/22 e Textbook and Media List of Accounts Prepare the journal entry to record interest received and interest income on December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Dec 31, 2021 eTextbook and Media List of Accounts Prepare the journal entries to record interest received and interest income on December 31, 2022, and the maturity of the bond. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to O decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Dec 31, 2022 (To record collection of interest) Dec 31, 2022 (To record maturity of bond investment) e Textbook and Media List of Accounts Prepare the entry for the disposal of the investment if Culver had sold the bond on December 31, 2021 for $283,500 instead of holding it to maturity. Assume that 2021 interest received and interest income have already been recorded. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts On January 1, 2020, Culver Corp. acquires $310,000 of Spider Products Inc. 8% bonds at a price of $287,273. The interest is payable each December 31, and the bonds mature on December 31, 2022. The investment will provide Culver Corp. with a 11% yield. Culver Corp. applies IFRS and accounts for this investment using the amortized cost model. Prepare a three-year bond amortization schedule. (Round answers to O decimal places, e.g. 5,275.) Schedule of Interest Income and Bond Discount Amortization Effective Interest Method Cash Received Interest Income Bond Discount Amortization Carrying Amount of Bonds Date 01/01/20 12/31/20 $ 12/31/21 12/31/22 e Textbook and Media List of Accounts Prepare the journal entry to record interest received and interest income on December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Dec 31, 2021 eTextbook and Media List of Accounts Prepare the journal entries to record interest received and interest income on December 31, 2022, and the maturity of the bond. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to O decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Dec 31, 2022 (To record collection of interest) Dec 31, 2022 (To record maturity of bond investment) e Textbook and Media List of Accounts Prepare the entry for the disposal of the investment if Culver had sold the bond on December 31, 2021 for $283,500 instead of holding it to maturity. Assume that 2021 interest received and interest income have already been recorded. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts
