Question
PLEASE SHOW THE CALCULATIONS YOU DID FOR EACH NUMBER YOU GET. I need to know the steps you did to get to the answer so
PLEASE SHOW THE CALCULATIONS YOU DID FOR EACH NUMBER YOU GET. I need to know the steps you did to get to the answer so that I can understand the work and learn. I will make sure to give thumbs up if you show the steps for your calculations :) thank you!
Effective Interest Amortization On January 1, Eagle, Inc., issued $980,000 of 9%, 20-year bonds for $1,029,000, yielding an effective interest rate of 8%. Semiannual interest is payable on June 30 and December 31 each year. The firm uses the effective interest method to amortize the premium. Required a. Prepare an amortization schedule showing the necessary information for the first two interest periods. Round amounts to the nearest dollar. b. Prepare the journal entry for the bond issuance on January 1. c. Prepare the journal entry to record the bond interest payment and premium amortization at June 30. d. Prepare the journal entry to record the bond interest payment and premium amortization at December 31. a.
Year at issue 1 Interest Period 1 2 Interest Paid 44,100 * $ 0 x 0 x Interest Expense 0 0 x 0 x Periodic Amortization $ tA of 0 $ 0 x 0 x Balance Unamortized Discount Book Value of Bonds End of Period 0 x 0 x 0 x 0 x $ 0 x 0 x General Journal Premium on Bonds Payable Bonds Payable To record issuance of bonds. Premium on Bonds Payable Cash To record semiannual interest paymentand premium amortization. Bond Interest Expense Premium on Bonds Payable Cash To record semiannual interest paymentand premium amortization. Date b. Jan.1 C. Jun.30 Bond Interest Expense d. Dec.31 Cash Description Debit 0 x 0 0 0 x 0 x 0 0 x 0 x 0 Credit 0 0 x 0 x 0 0 0 x 0 0 0 xStep by Step Solution
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