On May 1, 2021, Carla Vista Corp. issued $935,000 of 5-year, 6% bonds at 98. The bonds pay interest annually on May 1. Carla Vista's year end is 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 the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit May 1 Calculate the effective rate of the bonds using Excel or a financial calculator. (Round answer to 4 decimal places, e.g. 1.5751.) Effective rate % Prepare an effective interest amortization table for this bond. (Round answers to O decimal places, e.g. 5,276.) Carla Vista CORP. Bond Discount Amortization Table Effective Interest Method-Annual Interest Payments Interest Payment Interest Expense Discount Amortization Date Bond Amortized Cost $ $ $ $ May 1, 2021 May 1, 2022 May 1, 2023 May 1, 2024 May 1, 2025 May 1, 2026 Prepare an effective interest amortization table for this bond. (Round answers to O decimal places, e.g. 5,276.) Carla Vista CORP. Bond Discount Amortization Table Effective Interest Method-Annual Interest Payments Interest Payment Interest Expense Discount Amortization Date Bond Amortized Cost $ $ $ $ May 1, 2021 May 1, 2022 May 1, 2023 May 1, 2024 May 1, 2025 May 1, 2026 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, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit May 1 (To record interest payment.) Assuming instead that Carla Vista has a December 31, 2021, year end, prepare the adjusting entry relating to these bonds and the subsequent 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, select "No Entry" for the account titles and enter O for the amounts. Round answers to o decimal places, e.g. 5,276.) Date Account Titles and Explanation Debit Credit Dec. 31 (To accrue interest expense.) May 1 (To record interest payment.) Assume that on May 1, 2022, after payment of the interest, Carla Vista redeems all of the bonds at 104. Record the redemption of the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,276.) Date Account Titles and Explanation Debit Credit May 1 (To record redemption of bonds.)
