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Recording Bond Entries and Preparing an Amortization Schedule-Effective Interest Method, Discount, Interest Accrual Mitchell Inc. issued 76,6%, $1,000 bonds on January 1, 2020. The bonds pay cash interest semiannually each July 1, and January 1, and were issued to yield 7%. The bonds mature January 1, 2023, and the company uses the effective interest method to amortize bond discounts or premiums. Required a. Determine the selling price of the bonds. Round amount to the nearest dollar. b. Prepare an amortization schedule for the full bond term. c. Prepare journal entries on the following dates. 1. January 1, 2020, bond issuance. 2. July 1, 2020, interest payment. 3. December 31, 2020, interest accrual. 4. January 1, 2021, interest payment. Bond Selling Price Amortization Schedule Journal Entries a. Selling price of bonds $ 0 Check Recording Bond Entries and Preparing an Amortization Schedule-Effective Interest Method, Discount, Interest Accrual Mitchell Inc. issued 76,6%, $1,000 bonds on January 1, 2020. The bonds pay cash interest semiannually each July 1, and January 1, and were issued to yield 7%. The bonds mature January 1, 2023, and the company uses the effective interest method to amortize bond discounts or premiums. Required a. Determine the selling price of the bonds. Round amount to the nearest dollar. b. Prepare an amortization schedule for the full bond term. C. Prepare journal entries on the following dates. 1. January 1, 2020, bond issuance. 2. July 1, 2020, interest payment. 3. December 31, 2020, interest accrual. 4. January 1, 2021, interest payment. Bond Selling Price Amortization Schedule Journal Entries b. Note: Round amounts in schedule to the nearest whole dollar. Use rounded amounts for later calculations in the schedule. Note: Include any net rounding difference for Bond Payable, Net in the interest expense amount for January 1, 2023 Cash Interest Expense Discount Amortization Bonds Payable, Net $ 0 0 $ 0 0 $ 0 O O 0 0 Date Jan. 1, 2020 July 1, 2020 $ Jan. 1, 2021 July 1, 2021 Jan 1, 2022 July 1, 2022 Jan 1, 2023 Total $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 0 0 0 $ Recording Bond Entries and Preparing an Amortization Schedule-Effective Interest Method, Discount, Interest Accrual Mitchell Inc. issued 76,6%, $1,000 bonds on January 1, 2020. The bonds pay cash interest semiannually each July 1, and January 1, and were issued to yield 7%. The bonds mature January 1, 2023, and the company uses the effective interest method to amortize bond discounts or premiums. Required a. Determine the selling price of the bonds. Round amount to the nearest dollar. b. Prepare an amortization schedule for the full bond term. c. Prepare journal entries on the following dates. 1. January 1, 2020, bond issuance. 2. July 1, 2020, interest payment. 3. December 31, 2020, interest accrual. 4. January 1, 2021, interest payment. Bond Selling Price Amortization Schedule Journal Entries c. Note: List multiple debits or credits (when applicable) in alphabetical order. Note: Round your answers to the nearest whole dollar. Account Name Dr. Cr. Date 1. Jan. 1, 2020 0 0 0 0 0 0 2. Jul. 1, 2020 0 0 0 0 T 0 0 3. Dec. 31, 2020 0 0 0 0 4. Jan. 1, 2021 0 . 0 0
