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On January 1, 2020, Marin Inc. sold 10% bonds having a maturity value of $840,000 for $872,672, which provides the bondholders with a 9% yield.

On January 1, 2020, Marin Inc. sold 10% bonds having a maturity value of $840,000 for $872,672, which provides the bondholders with a 9% yield. The bonds are dated January 1, 2020, and mature on January 1, 2025, with interest payable on January 1 of each year. The company follows IFRS and uses the effective interest method.

Prepare the journal entry at the date of issue. (Round answers to 0 decimal places, e.g. 5,255. 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 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

Jan. 1, 2020

enter an account title for the journal entry on January 1

enter a debit amount

enter a credit amount

enter an account title for the journal entry on January 1

enter a debit amount

enter a credit amount

Prepare a schedule of interest expense and bond amortization for 2020 through 2023. (Round answers to 0 decimal places, e.g. 5,275.)
Schedule of Interest Expense and Bond Premium Amortization Effective Interest Method
Date Credit Cash Debit Interest Expense Debit Bonds Payable Carrying Amount of Bonds

1/1/20

$enter a dollar amount

1/1/21

$enter a dollar amount

$enter a dollar amount

$enter a dollar amount

enter a dollar amount

1/1/22

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

1/1/23

enter a dollar amount

enter a dollar amount

enter a dollar amount

enter a dollar amount

Prepare the journal entries to record the interest payment and the amortization for 2022. (Round answers to 0 decimal places, e.g. 5,275. 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 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31, 2022

enter an account title for the journal entry on December 31

enter a debit amount

enter a credit amount

enter an account title for the journal entry on December 31

enter a debit amount

enter a credit amount

enter an account title for the journal entry on December 31

enter a debit amount

enter a credit amount

Jan. 1, 2023

enter an account title for the journal entry on January 1

enter a debit amount

enter a credit amount

enter an account title for the journal entry on January 1

enter a debit amount

enter a credit amount

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