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On January 1, 2020, Peace Ltd. purchased $100,000. 5 year, 5% bonds from Serenity Corp. when the market rate of interest was 6%. Interest on
On January 1, 2020, Peace Ltd. purchased $100,000. 5 year, 5% bonds from Serenity Corp. when the market rate of interest was 6%. Interest on the bonds is payable semi-annually on July 1 and January 1 of each year. Both companies have a December 31 year-end. Question 3 Required: Please complete all sections below. Your answers should be rounded to nearest dollar. 1) Calculate the issue price of the bonds. 2) Prepare a bond amortization schedule from the date of issue up to and including January 1, 2023. 3) Record the separate journal entries for both Peace and Serenity for the purchase of the bond on January 1, 2020. 4) Record the journal entries for both Peace and Serenity at December 31, 2020. 5) Record the journal entries for the January 1, 2021 interest payment for both Peace and Serenity. 6) On January 1, 2023, Serenity decided to fully redeem the bonds at 102. Prepare the journal entry to record the redemption for both Peace and Serenity. On January 1, 2020, Peace Ltd. purchased $100,000. 5 year, 5% bonds from Serenity Corp. when the market rate of interest was 6%. Interest on the bonds is payable semi-annually on July 1 and January 1 of each year. Both companies have a December 31 year-end. Question 3 Required: Please complete all sections below. Your answers should be rounded to nearest dollar. 1) Calculate the issue price of the bonds. 2) Prepare a bond amortization schedule from the date of issue up to and including January 1, 2023. 3) Record the separate journal entries for both Peace and Serenity for the purchase of the bond on January 1, 2020. 4) Record the journal entries for both Peace and Serenity at December 31, 2020. 5) Record the journal entries for the January 1, 2021 interest payment for both Peace and Serenity. 6) On January 1, 2023, Serenity decided to fully redeem the bonds at 102. Prepare the journal entry to record the redemption for both Peace and Serenity
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