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On July 1, 2021, Ponasis Corporation issued $1 million of 10-year, 6% bonds at a price to yield a market interest rate of 7%. The
On July 1, 2021, Ponasis Corporation issued $1 million of 10-year, 6% bonds at a price to yield a market interest rate of 7%. The bonds pay seminare on July 1 and January 1. Ponasis has a December 31 year end and records adjusting entries annually. Ponasis received $928,938 when issuing the bonds Instructions a) Prepare an amortization table through January 1, 2023 (three interest periods) for this bond issue. Round all amounts to the nearest dollar 5 mars b) Record the issue of the bonds on July 1, 2021. (2 marks) c) Prepare the adjusting entry on December 31, 2021, to accrue the interest on the bonds. (3 marks) 5) Show the statement of financial position presentation of the liabilities at December 31, 2021. [3 marks) =) Record the payment of interest on January 1, 2022, and July 1, 2022. (5 marks) 3) Period Interest Interest Paid Expense Amortization Unamortized Ending Balance S Scanhed vith cams Interest interest Paid Expense Amortization Unamortized Ending Balance Period Debit ate Accounts and Explanations Debit Credit ate Accounts and Explanations Scanned with CamScanner D E F G H d Ponasis Corporation Statement of Financial Position (Partial) December 31, 2021 CS Scanned with CamScanner f) Date Accounts and Explanations Debit Credit g) Date Accounts and Explanations Debit Credit CS Scanned with CamScanner
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