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On January 1, 2020, Teal Company purchased 10% bonds having a maturity we of 5380.000, for $410.343.38. The bands provide the bondholders with a 8%
On January 1, 2020, Teal Company purchased 10% bonds having a maturity we of 5380.000, for $410.343.38. The bands provide the bondholders with a 8% yield. They are dated January 1, 2020, and mature January 1 2025, with interest received on January 1 of each year. Teal Company uses the effective interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category 2.525 25. Credit runt titles are automatically indented when amounts entered. Do not indent manually. Une entry is required Prepare the journal entry at the date of the band purchase (Enter answers to 2 decimal places select "No Entry for the accountities and enter for the amounts) Date Account Titles and Explanation Debit Credit Jan. 1.2020 e Textbook and Media List of Accounts Prepare a bond amortization schedule. (Round answers to 2 decimal places 2.525.25) Schedule of Interest Revenue and bland Premium Amortization Effective Interest Method Interest Carrying Amount Cash Received Premium Amortired Date 1/1/20 1/1/21 1/1/22 1/1/23 1/1/25 Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020. (Round answers to 2 decimal places, Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Dec 31, 2020 e Textbook and Media List of Accounts Prepare the journal entry to record the interest revenue and the amortization at December 31, 2021. (Round answers to 2 decimal places, Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Dec 31, 2021 e Textbook and Media List of Accounts
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