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On January 1, 2020, Sheridan Industries Ltd. issued 2,100,000 face value, 5%, 10-year bonds at 1,945,438. This price resulted in an effective interest rate of

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On January 1, 2020, Sheridan Industries Ltd. issued 2,100,000 face value, 5%, 10-year bonds at 1,945,438. This price resulted in an effective interest rate of 6% on the bonds. Sheridan uses the effective interest method to amortize bond premium or discount. The bonds pay annual interest on January 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) Date Account Titles and Explanation Debit Credit January 1.2020 Prepare an amortization table through December 31, 2022 (three interest periods) for this bond issue. (Round answers to O decima places, eg. 15,250.) LOCK INDUSTRIES LTD. Bond Discount Amortization Effective Interest Method-Annual Interest Payments 5% Bonds issued at 6% (B) (C) Interest Expense to Be Discount Amortization Recorded (B) - (A) (A) Interest to Be Paid (D) Bond Carrying Value E E E 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 automatically Indented when amount is entered. Do not indent manually) Debit Credit Date Account Titles and Explanation Dec 31, 2020 eTextbook and Media List of Accounts ^ Prepare the journal entry to record the payment of interest on January 1, 2021. (Round answers to decimal places, eg. 15,250, Credit account tities are automatically indented when amount is entered. Do not indent manually Date Account Titles and Explanation Debit Credit Jan. 1 2021 Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2021. (Round answers to decimal places, eg 15.250. Credit account titles are automatikally indented when amount is entered. Do not indent manually) Debit Credit Date Account Titles and Explanation Dec. 31. 2021

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