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please help me solve this question Blossom Cars Co. issued $2.16 million of 5%, 5-year bonds on January 1, 2021. The bonds were dated January
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Blossom Cars Co. issued $2.16 million of 5%, 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 4% for these bonds. Blossom 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 too decimal places, eg. 1.575.) Price of the bonds $ 1 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 for the amounts. Date Account Titles and Explanation Jan 1, 2021 Debit Credit To record issuance of bonds. Prepare an effective interest amortization table for these bonds. (Round answers to decimal places, e.g.5,275.) BLOSSOM CARS CO. Bond Premium Amortization Table Effective Interest Method-Annual Interest Payments 5% Bonds Issued at market rate of 4% Interest Payment Interest Expense Premium Amortization $ Date Bond Amortized Cost $ Jan. 1. 2021 $ Jan. 1, 2022 Jan. 1.2023 Jan, 1.2024 Jan. 1.2025 Jan. 1. 2026 e Textbook and Media List of Accounts 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 Ofor the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1,2022 (To record interest payment.) Jan. 1, 2023 I (To record interest payment.) Jan. 1.2024 (To record interest payment.). Textbook and Media
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