Problem 14-05 In each of the following independent cases, the company closes its books on December 31. Sandhill Co. sells $494,000 of 10% bonds on March 1, 2020. The bonds pay interest on September i and March 1. The due date of the bonds is September 1, 2023. The bonds yleld 12%. Glve entries through December 31, 2021. 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 Carrying Cash Interest Discount Amount of Date Paid Expense Amortized Bonds 3/1/20 9/1/20 3/1/21 9/1/21 3/1/22 9/1/22 3/1/23 9/1/23 Prepare all of the relevant journal entries from the time of sale until December 31, 2021. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 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 Carrying Cash Interest Discount Amount of Date Paid Expense Amortized Bonds 3/1/20 $ 9/1/20 3/1/21 9/1/21 3/1/22 9/1/22 3/1/23 9/1/23 Prepare all of the relevant journal entries from the time of sale until December 31, 2021. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to o decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 3/1/20 Cash Prepare all of the relevant journal entries from the time of sale until December 31, 2021. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to o decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 3/1/20 Cash Discount on Bonds Payable Bonds Payable 9/1/20 Interest Expense Discount on Bonds Payable Cash 12/31/20 Interest Expense Discount on Bonds Payable Interest Payable 3/1/21 Interest Expense Interest Payable Discount on Bonds Payable Cash Bonds Payable 9/1/20 Interest Expense Discount on Bonds Payable Cash 12/31/20 Interest Expense Discount on Bonds Payable Interest Payable 3/1/21 Interest Expense Interest Payable Discount on Bonds Payable Cash 9/1/21 Interest Expense Discount on Bonds Payable Cash 12/31/21 12/31/20 interest Expense Discount on Bonds Payable Interest Payable 3/1/21 Interest Expense Interest Payable Discount on Bonds Payable Cash 9/1/21 Interest Expense Discount on Bonds Payable Cash 12/31/21 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Teal Co. sells $414,000 of 12% bonds on June 1, 2020. The bonds pay Interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 10%. On October 1, 2021, Teal buys back $136,620 worth of bonds for $143,620 (Includes accrued interest). Give entries through December 1, 2022. 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 Carrying Cash Interest Premium Amount of Paid Expense Amortized Bonds 6/1/20 Date $ 12/1/20 6/1/21 12/1/21 6/1/22 12/1/22 6/1/23 12/1/23 6/1/24 - Difference due to rounding PranaLofthenaturales dias from the time ane Recamba2022A aume that mesin enties 4 12/1/23 6/1/24 * Difference due to rounding Prepare all of the relevant journal entries from the time of sale until December 31, 2022. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 6/1/20 12/1/20 12/31/20 6/1/21 12/31/20 6/1/21 10/1/21 (To record interest expense and premium amortization) 10/1/21 (To record interest expense and premium amortization) 10/1/21 (To record buy back of bonds) 12/1/21 12/31/21 6/1/22 12/1/21 12/31/21 6/1/22 12/1/22 SHOW LIST OF ACCOUNTS LINK TO TEXT UNK TO TEXT List of Accounts Problem 14-05 Accumulated Depreciation Equipment Accumulated Depreciation-Machinery Accumulated Depreciation-Plant and Equipment Allowance for Doubtful Accounts Bad Debt Expense Bond Issue Expense Bonds Payable Buildings Cash Common Stock Cost of Goods Sold Debt Investments Depreciation Expense Discount on Bonds Payable Discount on Notes Payable Discount on Notes Receivable Equipment Equity Investments Gain on Disposal of Machinery Gain on Disposal of Land Gain on Disposal of Plant Assets Gain on Redemption of Bonds Gain on Restructuring of Debt Gain on Sale of Machinery Interest Expense Interest Payable Interest Receivable Interest Revenue Inventory Land Loss on Disposal of Equipment Loss on Disposal of Land Loss on Redemption of Bonds Machinery Mortgage Payable No Entry Notes Payable Cost of Goods Sold Debt Investments Depreciation Expense Discount on Bonds Payable Discount on Notes Payable Discount on Notes Receivable Equipment Equity Investments Gain on Disposal of Machinery Gain on Disposal of Land Gain on Disposal of Plant Assets Gain on Redemption of Bonds Gain on Restructuring of Debt Gain on Sale of Machinery Interest Expense Interest Payable Interest Receivable Interest Revenue Inventory Land Loss on Disposal of Equipment Loss on Disposal of Land Loss on Redemption of Bonds Machinery Mortgage Payable No Entry Notes Payable Notes Receivable Paid-in Capital in Excess of Par - Common Stock Paid-in Capital in Excess of Par - Preferred Stock Premium on Bonds Payable Retained Earnings Salaries and Wages Expense Sales Sales Revenue Unamortized Bond Issue Costs Unearned Revenue Unearned Sales Revenue Unrealized Holding Gain or Loss - Equity Unrealized Holding Gain or Loss -Income