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On July 1, 2021, Bramble Satellites Corporation issued $1,700,000 of 10-year, 9% bonds to yield a market interest rate of 8%. The bonds pay semi-annual
On July 1, 2021, Bramble Satellites Corporation issued $1,700,000 of 10-year, 9% bonds to yield a market interest rate of 8%. The bonds pay semi-annual interest on July 1 and January 1. Bramble has a December 31 year end and records adjusting entries annually. Bramble received $1,815,523 when issuing the bonds. Prepare an amortization table through January 1, 2023 (three interest periods) for this bond issue. (Round all amounts to the nearest dollar, e.g. 5,275) BRAMBLE SATELLITES CORPORATION Bond Premium Amortization Semi- annual interest periods Interest to be paid Interest Expense to be Recorded Premium Amortization Unamortized Premium July 1/21 1155 Jan. 1/22 $ 76500 $ 72621 $ 3879 11164 July 1/22 76500 72466 Jan. 1/23 76500 72304 4196 4034 1076 O 1034 BRAMBLE SATELLITES CORPORATION Bond Premium Amortization Interest Expense to be Unamortized Recorded Premium Amortization Premium $ 72621 $ 3879 72466 Bond Carrying Amount 115523 $ 111644 1815523 1811644 4034 107610 1807610 4196 103414 1803414 72304 Prepare the adjusting entry on November 30, 2021, to accrue the interest on the bonds, assuming the company's year end was November 30, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round all amounts to the nearest dollar, eg. 5.275) Date Account Titles and Explanation 2021 Nov. 30 Debit Credit
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