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PLEASE SHOW ALL WORK! THANK YOU! Exercise 17-03 On January 1, 2020, Bridgeport Company purchased 8% bonds having a maturity value of $280,000, for $303,589.66.
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THANK YOU!
Exercise 17-03 On January 1, 2020, Bridgeport Company purchased 8% bonds having a maturity value of $280,000, for $303,589.66. The bonds provide the bondholders with a 6% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Bridgeport Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Your answer is partially correct. Try again. Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit XL111111LLLLLLLLLLL 303,589.66T Jan. 1, 2020 Debt Investments Cash U Cash 303,589.66 Your answer is partially correct. Try again. Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.) Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method Interest Premium Revenue Amortized Cash Received Carrying Amount of Bonds Date 1/1/20 303,589.66 4/12> 303,589.66 18,215.38 4.184.62] 299405.04 1/22 299405.04 17.1964.3 4,435.70| 294969.34 PPPPT HTTPUT PPTT- 1/1/23 294969.34 17,698.16 14701.84] T 290267.5 1/1/24 290267.50 17416.05 1983.95 | 285283.55 1/1/25 285283.55 17117.01 5282.99 280,000 Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020. (Round answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when 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 Dec. 31, 2020 Interest Receivable 22.400 4184.62 Interest Revenue 18,215.38 Prepare the journal entry to record the interest revenue and the amortization at December 31, 2021. (Round answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit X Dec. 31, 2021 Interest Receivable 2,400 4,435.7 Interest Revenue 17,963.30Step by Step Solution
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