Question
On January 1, 2024, Blossom Ltd issued bonds with a maturity value of $7.60 million when the market rate of interest was 4% The bonds
On January 1, 2024, Blossom Ltd issued bonds with a maturity value of $7.60 million when the market rate of interest was 4% The bonds have a coupon (contractual) interest rate of 5% and mature on January 1, 2034 Interest on the bonds is payable semi-annually on July 1 and January 1 of each year. The company's year end is December 31. Prepare a bond amortization schedule from the date of issue upto and including January 1, 2027.
| Bond Amortization Table | |||||
| Semiannual interest period end | Cashinterestpaid | BondInterestExpense | PremiumAmortization | UnamortizedPremium | CarryingValue |
| 01-Jan-24 |
|
|
| $621,344 | $8,221,344 |
| 01-Jul-24 | $190,000 | $164,427 | $25,573 | $595,771 | $8,195,771 |
| 01-Jan-25 | $190,000 | $163,915 | $26,085 | $569,686 | $8,169,686 |
| 01-Jul-25 | $190,000 | $163,394 | $26,606 | $543,080 | $8,143,080 |
| 01-Jan-26 | $190,000 | $162,862 | $27,138 | $515,942 | $8,115,942 |
| 01-Jul-26 | $190,000 | $162,319 | $27,681 | $488,260 | $8,088,260 |
| 01-Jan-27 | $190,000 | $161,765 | $28,235 | $460,026 | $8,060,026 |
Prepare all of the required journal entries related to the bonds that Blossom Ltd. will record upto 2026, including any adjusting journal entries at December 31, 2026.
For Jan 1, 2024 , July 1, 2024, December 31, 2024, Jan 1, 2025, July 1, 2025, December 31, 2025, Jan 1, 2026, July 1, 2026, December 31, 2026
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Advanced Quality Auditing An Auditors Review Of Risk Management Lean Improvement And Data Analysis
Authors: Lance B Coleman
1st Edition
163694082X, 978-1636940823
