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On January 1, 2022, Flint Corporation issued $1,790,000 face value, 7%, 10-year bonds at $1,669,889. This price resulted in an effective-interest rate of 8% on
On January 1, 2022, Flint Corporation issued $1,790,000 face value, 7%, 10-year bonds at $1,669,889. This price resulted in an effective-interest rate of 8% on the bonds. Flint uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest January 1. (b) Your answer is partially correct. Prepare an amortization table through December 31, 2024 (three interest periods) for this bond issue. (Round answers to 0 decimal places, e.g. 125.) FLINT CORP. Bond Discount Amortization Effective-Interest Method-Annual Interest Payments Interest Expense to Be Recorded Discount Amortization Unamortized Discount Bond Carrying Value $ 120111 $ 1669889 116892 8408 111703 1661481 116303 8997 102706 1652484 115673 9627 93079 1642857 Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2017. (Round answers to decimal places, eg. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit Prepare the journal entry to record the payment of interest on January 1, 2018. (Round answers to decimal places, eg. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Credit Debit Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2018. (Round answers to decimal places, eg. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit
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