Question
On January 1, 2020, Windsor Company purchased $370,000, 8% bonds of Aguirre Co. for $341,429. The bonds were purchased to yield 10% interest. Interest is
On January 1, 2020, Windsor Company purchased $370,000, 8% bonds of Aguirre Co. for $341,429. The bonds were purchased to yield 10% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2025. Windsor Company uses the effective-interest method to amortize discount or premium. On January 1, 2022, Windsor Company sold the bonds for $343,034 after receiving interest to meet its liquidity needs.
Prepare the amortization schedule for the bonds. (Round answers to 0 decimal places, e.g. 1,250.)
Schedule of Interest Revenue and Bond Discount AmortizationEffective-Interest Method Bonds Purchased to Yield | ||||||||
Date | Interest Receivable Or Cash Received | Interest Revenue | Bond Discount Amortization | Carrying Amount of Bonds | ||||
1/1/20 | $ | $ | $ | $ | ||||
7/1/20 | ||||||||
1/1/21 | ||||||||
7/1/21 | ||||||||
1/1/22 | ||||||||
7/1/22 | ||||||||
1/1/23 | ||||||||
7/1/23 | ||||||||
1/1/24 | ||||||||
7/1/24 | ||||||||
1/1/25 | ||||||||
Total | $ | $ | $ |
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