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Prepare all of the relevant journal entries from the time of sale until the date indicated. Give entries through December 1, 2019. (Assume that no
Prepare all of the relevant journal entries from the time of sale until the date indicated. Give entries through December 1, 2019. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Pearl Co. sells $430,000 of 12% bonds on June 1, 2017, The bonds pay interest on December 1 and June 1, The due date of the bonds is June 1, 2021 . The bonds yield 10%. On October 1, 2018, Pearl buys back $141,900 worth of bonds for $149,900 (includes accrued interest) Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to o decimal places, e.g. 38,548.) Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield Cash Paid Discount Amortized Carrying Amount of Bonds Interest Date Expense 12/1/18 12/1/19 6/1/20 12/1/20 6/1/21Step by Step Solution
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