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please answer a,b,c,d. Thank you. 5. Schmidt Corporation purchased $100,000 of 10%, 10-year bonds on January 1, 2020, with interest payable on July 1, and
please answer a,b,c,d. Thank you. 5. Schmidt Corporation purchased $100,000 of 10%, 10-year bonds on January 1, 2020, with interest payable on July 1, and January 1. The bonds are to be classified as available-for-sale securities. The bonds sell for $88,530 which results in a bond discount of $11,470 and an effective interest rate of 12%. At December 31, 2020, the fair value and the carrying amount of the bonds are equal. Instructions: a. Prepare the entry to record the purchase of the bonds on January 1, 2020. b. Prepare a schedule of interest revenue and bond discount amortization effective interest method for the dates 1/1/20, 7/1/20, 1/1/21 and 7/1/21. c. Prepare the journal entries to record interest revenue on July 1, 2020 and December 31, 2020. d. On July 1, 2021, Schmidt Corporation sells the bonds for $88,000. Prepare the journal entry recording interest revenue on that date and another entry to record the sale
please answer a,b,c,d. Thank you.
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