Question
On January 1, 2020,FlintCompany sold12% bonds having a maturity value of $600,000for $645,489, which provides the bondholders with a10% yield. The bonds are dated January
On January 1, 2020,FlintCompany sold12% bonds having a maturity value of $600,000for $645,489, which provides the bondholders with a10% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year.FlintCompany allocates interest and unamortized discount or premium on the effective-interest basis.
a.Prepare the journal entry at the date of the bond issuance.
b.Prepare schedule of interest expense and bond amortization for 2020-2022.
c.Prepare the journal entry to record the interest payment and the amortization for 2020.
d.Prepare the journal entry to record the interest payment and the amortization for 2022.
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Accounting
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
9th edition
1118608224, 1118608227, 730323994, 9780730323990, 730319172, 9780730319177, 978-1118608227
