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On May 1, 2021, Blossom Corp. issued $890,000 of 5 year, 65 bonds at 96. The bonds pay interest annually on May 1. Blossoms arendis

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On May 1, 2021, Blossom Corp. issued $890,000 of 5 year, 65 bonds at 96. The bonds pay interest annually on May 1. Blossoms arendis April 30. Record the issue of the bonds on May 1.2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required select "No Entry for amounts.) Date Account Titles and Explanation May 1 Cash Debit Credit 890000 Bonds Payable 890000 Calculate the effective rate of the bonding Elor financial cator und wer to decimal 15751) Effective rate Prepare an effective interest amortization table for this bond. (Round answers to decimal places, s. 5.276.) Blossom CORP Bond Discount Amortization Table Effective Interest Method Annual Interest Payments Interest Payment Interest Expense Discount Amortization Date Bond Amortized Cost May 1, 2021 5 $ May 1, 2022 May 1, 2023 May 1, 2024 May 1, 2025 May 1, 2026 Credit Record the accrual of interest at April 30, 2022. (Credit account titles are automatically indented when the amounts. Round answers to decimal places. 3.5.276) Debit Date Account Titles and Explanation Apr. 30 To accrue interest expense) eTextbook and Media List of Accounts Record the interest payment on May 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required amounts.) Credit Debit Date Account Titles and Explanation May 1 To record interest payment) Assuming instead that Blossom has a December 31, 2021 year end prepare the justing entry relating to these bonds and the subsequent interest payment on May 1, 2022 when the amount is entered. Do not indent manual no entry is required, select 'No Entry for the account title and enter for the amounts. Round answers to decimal places, .5.2 Date Account Titles and Explanation Dec. 31 Debit Credit (To accrue interest expense) May 1 [Torecord interest payment Assume that on May 1, 2022, after payment of the interest, Blossom redeems all of the bonds at 102. Record the redemption of the bonds. (Creditace Indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to decimal places, eg. 5,276) Date Account Titles and Explanation Debit Credit May 1 (To record redemption of bonds.)

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