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On January 31, 2020, the Royal Caribbean Group (RCG) issued 9%, 10-year bonds with a maturity value of $15,000,000. The semi-annual interest dates are July
On January 31, 2020, the Royal Caribbean Group (RCG) issued 9%, 10-year bonds with a maturity value of $15,000,000. The semi-annual interest dates are July 31 and January 31. The market interest rate is 8% and the issue price of the bonds is 106. RCG amortizes bonds by the effective-interest method. Required: Drag and drop to journalize the following transactions. Important: If more than one debit or credit is required in a journal entry, input in alphabetical order. Note: there may be unused responses when the question is complete. a) Issuance of bonds on January 31, 2020. b) Payment of interest and amortization of the bonds on July 31, 2020. Date Account DEBIT CREDIT Jan 31, 2020 July 31, 2020 Interest expense Premium on bonds payable Interest revenue Discount on bond investment Discount on bonds payable Long-term investment in bonds Bonds payable Cash Premium on bond investment 900,000 78,000 39,000 715,500 1,431,000 15,900,000 1,350,000 15,000,000 636,000 1,200,000 600,000 1,272,000 14,100,000 675,000 564,000 1,128,000
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