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On January 1, 2020. Ivanhoe Industries Ltd. issued f2,060,000 face value, 4%, 10-year bonds at E,900,932. This price resulted in an effective-interest rate of 5%
On January 1, 2020. Ivanhoe Industries Ltd. issued f2,060,000 face value, 4\%, 10-year bonds at E,900,932. This price resulted in an effective-interest rate of 5% on the bonds. Ivanhoe uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on January 1. Part 1 Prepare the journal entry to record the issuance of the bonds on January 1,2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) LOCKINDUSTRIES LTD. Bond Discount Amortization Effective-Interest Method-Annual Interest Payments 4% Bonds issued at 5% Annual (B) (C) (A) (D) nterest Interest Expense to Be Discount Amortization Bond Carrying ?eriods Recorded (B) - (A) Issue date 1 E E E 2 3 Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31,2020 . (Round answers to 0 decimal places, eg. 15,250. Credit account titles are outomatically indented when amount is entered. Do not indent manually.) Prepare the journal entry to record the payment of interest on January 1, 2021. (Round answers to 0 decimal ploces, eg. 15,250 . Credit account tities are automotically indented when amount is entered. Do not indent manually.) Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2021. (Round answers to 0 decimal places, es. 15,250. Credit occount titles are automatically indented when amount is entered. Do not indent manually.)
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