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On January 1, 2020, Splish Brothers Inc. sold 14% bonds having a maturity value of $820,000 for $879,122, which provides the bondholders with a 12%
On January 1, 2020, Splish Brothers Inc. sold 14% bonds having a maturity value of $820,000 for $879,122, which provides the bondholders with a 12% 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. Account Titles and Explanation Debit Credit Date Dec. 31, 2020 interest expenses 105495 Bonds Payable 9305 cash 114800 Jan. 1, 2021 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.) Account Titles and Explanation Debit Credit Date Dec. 31, 2022 Jan. 1, 2023
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