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On January 1, 2020, Larkspur Corporation purchased a newly issued $1.225.000 bond. The bond matured on December 31, 2022, and paid interest at 6% every
On January 1, 2020, Larkspur Corporation purchased a newly issued $1.225.000 bond. The bond matured on December 31, 2022, and paid interest at 6% every June 30 and December 31. The market interest rate was 8%. Larkspur's fiscal year-end is October 31, and the company had the intention and ability to hold the bond until its maturity date. The band will be accounted using the amortized cost model Calculate the price paid for the bond using a financial calculator or Excel functions. (Round answers to 2 decimal places, e.g. 52.75.) PV $ 1160783.82 e Textbook and Media List of Accounts Prepare an amortization schedule for the bond. (Round answers to 2 decimal places, e.g. 52.75.) Date Cash Received Interest Revenue Discount Amortization Amc (Pre $ Jan. 1, 2020 June 30, 2020 $ 36750.00 $ 46431.35 $ 9681.35 Dec 31, 2020 36750.00 46818.61 10068.61 June 30, 2021 36750.00 47221.35 10471.35 Dec 31, 2021 36750.00 47640.21 10890.21 June 30, 2022 36750.00 48075.81 11325.81 Dec 31, 2022 36750.00 48528.85 11778.85 220500.00 284716.18 64216.18 e Textbook and Media TUALDUUN CITUTILUTCH List of Accounts Prepare an amortization schedule for the bond. (Round answers to 2 decimal places, e.g. 52.75.) Cash Received Interest Revenue Discount Amortization Amortized Cost (Present Value) $ 1160783.82 $ 36750.00 $ 46431.35 $ 9681.35 1170465.18 36750.00 46818.61 10068.61 1180533.78 36750.00 47221.35 10471.35 1191005.13 36750.00 47640.21 10890.21 1201895.34 36750.00 48075.81 11325.81 1213221.15 36750.00 48528.85 11778.85 1225000.00 220500.00 284716.18 64216.18 Debit Credit Date 1,2020 Account Titles and Explanation Bond start at Amor Cout 1160783.92 June 30, 2020 3675000 Bon And Cut 9135 interior 40 Oct. 31. 2000 Bondia Arte Cout Inbre Dec 31, 2020 Biondet And Cost Dec 31, 2022 Cash Dondvestment at Amortidos Interest Recevable To record collection of interest Dec 31, 2022 1225000 1 Bordwanderted Cost (To record maturity of bondi
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