Oriole Cars Co. issued $ 1.91 million of 9%, 5-year bonds on January 1, 2021. The bonds were dated January 1 and pay interest annually. The bonds are secured with real estate holdings. The market interest rate was 8% for these bonds. Oriole has a calendar year end. Click here to view the factor table. Present Value of 1 Click here to view the factor table. Present Value of an Annuity of 1

Calculate the price of the bonds. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 0 decimal places, e.g. 1,575.)

Price of the bonds

$

Record the bond issue. (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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2021
	(To record issuance of bonds.)

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Question Part Score

--/0.3

Prepare an effective interest amortization table for these bonds. (Round answers to 0 decimal places, e.g. 5,275.)

ORIOLE CARS CO. Bond Premium Amortization Table Effective Interest MethodAnnual Interest Payments 9% Bonds Issued at market rate of 8%
Date		Interest Payment		Interest Expense		Premium Amortization		Bond Amortized Cost
Jan. 1, 2021		$		$		$		$
Jan. 1, 2022
Jan. 1, 2023
Jan. 1, 2024
Jan. 1, 2025
Jan. 1, 2026

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Question Part Score

--/0.35

Journalize the first three interest payments assuming reversing entries have been used. (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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2022
	(To record interest payment.)
Jan. 1, 2023
	(To record interest payment.)
Jan. 1, 2024
	(To record interest payment.)

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List of Accounts