P124 B D E F Problem 2: G H K L M On January 1, 2020, the Ryder Company issued $600.000 (face value) of eight-year bonds at 5675,367 to yield an effective annual interest rate of 6%. The stated annual interest rate is 8%, and interest will be paid semiannually on June 30 and December 31. The Ryder Company uses the effective interest method to amortize bond discounts or premiums. Required (18 points): 2. Prepare the journal entry(ies) to record the issuance of the bonds on January 1, 2020. Date Accounts Debit Credit Fave value Carrying value Market rate Stated rate 1/1/2020 Cash 675367 600000 675367 69 89 Bond Payable 600000 Premium on Bond Payable 75367 2 3 57 4 b. Prepare a bond premium amortization schedule for the first 2 years of the bond life using the effective interest method. 3 Date Cash interest Interest expense Amortization of Premium Carrying value of B/P 1/1/2020 675367 6/30/2020 24000 2026101 3738.9900000000016 671628.01 58 12/31/2020 24000 20148 8403 3851.1597 667776.8503 39 6/30/2021 24000 20033.305509 3966,6944909999984 663810.155809 60 12/31/2021 24000 19914 30467427 4085.6953257 659724 A-048327 61 6/10/2022 24000 19791.7338144981 4205 2061855019 655516.1942977681 63 c. Prepare journal entries required on June 30 and December 31, 2020 64 Date Accounts Debit Credit 65 6/30/2020 Interest Expense 20261 66 Premium on Bond Payable 3739 Cash 24000 68 69 12/31/2020 Interest Expense 20149 70 Premium on Bond Payable 3851 Cash 24000 72 73 d. On January 1, 2022, the company redeemed all $600.000 (face value of the bonds at $630,000. Prepare the journal entries to record the redemption of the bonds Accounts Debat Credit 35 1/1/2022 Bonds Payable 600000 76 Premium on Ponds payable 77 Cash Clain on Redemtion of Rands 74 Date 6.30000 MacBook Pro E80 c 46 Required (18 points): D E F G K 47 a. Prepare the journal entry(ies) to record the issuance of the bonds on January 1, 2020. 48 Date Accounts Debit Credit 40 1/1/2020 Cash Fave value Carrying value Market rate Stated rate 675367 SO 600000 Bond Payable 675367 600000 8% 51 Premium on Bond Payable 75367 52 53 54 b. Prepare a bond premium amortization schedule for the first 2 years of the bond life using the effective interest method. 55 Date Cash interest Interest expense Amortization of Premium Carrying value of B/P 56 1/1/2020 675367 57 6/30/2020 24000 20261.01 3738.9900000000016 58 12/31/2020 671628.01 24000 20148.8403 3851.1597 667776.8503 59 6/30/2021 24000 20033.305509 3966,6944909999984 663810.155809 60 12/31/2021 24000 19914.30467427 4085.695325730001 659724.46048327 61 6/30/2022 24000 19791.7338144981 4208.2661855019 655516.1942977681 62 63 c. Prepare journal entries required on June 30 and December 31, 2020, 64 Date Accounts Debit Credit 65 6/30/2020 Interest Expense 20261 66 Premium on Bond Payable 3739 67 Cash 24000 6R 69 12/31/2020 Interest Expense 20149 70 Premium on Bond Payable 71 Cash 24000 72 73 d. On January 1, 2022, the company redeemed all S600,000 (face value of the bonds at $630,000. Prepare the journal entries to record the redemption of the bonds. 74 Date Credit Accounts Debit 75 1/1/2022 Bonds Payable 600000 76 Premium on Ponds payable ??? 630000 77 Cash 77? Could you please help me with part d? Thank you so much! 78 Gain on Redemtion of Bonds 79 3851 8
