problem 14-6. Before maturity, Foster incorporated sold $500,000 of 12% bonds on january 1, 2019, for $470,143.47 a price that yields a 14% interest rate. the bonds pay interest semiannually on June 30 and december 31 and are due December 31, 2022. foster uses the effective interest method.

prepare an interest expense and discount ammortization schedule. assume the company reacquired the bonds on July 1, 2021 at 104. prepare journal entries to record the bond retirement.

40 Chapter 14 Financing Liabilities: Bonds and Long-Term Notes Payable repare any adjusting entries for the end of the fiscal year, December 31, 2019, using the straight-line method of amortization S chective interest method of amortization me the company retires the bonds on June 30, 2020, at 103 plus accrued interest tries to record the bond retirement using the: straight-line method of amortization b. effective interest method of amortization P14-6 Discount Amortization Schedule and Retirement Before maturity, Foster Incorporated sold $50 10 145 bonds on Tanuary 1, 2019. for $470,143.47, a price that yields a 14% interest rate. The bonds nav in LO 14.6 mually on June 30 and December 31 and are due December 31, 2022. Foster uses the effective inte Required: 1. Prepare an interest expense and discount amortization schedule. 2. Assume the company reacquired the bonds on July 1, 2021, at 104. Prepare journal entrie bond retirement P14-7 Comprehensive Wilbury Corporation issued $1 million of 13.5% bonds for $985,071.68. The LO 14.5 and issued October 1, 2019, are due September 30, 2020, and pay interest semiannually or LO 14.6 September 30. Assume an effective yield rate of 14%. LO 14.9 Required: SHOW ME HOW 1. Prepare a bond interest expense and discount amortization schedule using the straight-line in 2. Prepare a bond interest expense and discount amortization schedule using the effective inter 3. Prepare adjusting entries for the end of the fiscal year December 21 20 a stricht Chapter Prepare the journal Prepare any adjusting entries for the end of the fiscal year, December 31, 2019. using the a straight-line method of amortization b. effective interest method of amortization Assume the company retires the bonds on June 30, 2020, at 103 plus accrued interest Pren entries to record the bond retirement using the: a straight-line method of amortization b. effective interest method of amortization count Amortization Schedule and Retirement Before maturity, Foster Incorporated sold $500.000 Hs on January 1, 2019 for $79.143.47. a price that yields a 14% interest rate. The bonds pay interest on line 30 and Deceb a nd are due December 31, 2022. Foster uses the effective interest Fred: repare an interest expense and discount amortization schedule, ssume the company reacquired the bonds on July 1, 2021, at 104. Prepare journal entries to record and retirement rehensive Wilbury Corporation issued $1 million of 13.5% bonds for $985,071.68. The bonds are dated ued October 1, 2019, are due September 30, 2020, and pay interest semiannually on March 31 and ber 30. Assume an effective yield rate of 14%. pare a bond interest expense and discount amorti are a bond interest expense and discount amor pare adjusting entries for the end of the fiscal Straight-line method of amortization effective interest met! mortization ome before interest taxes of 30 me the company dule y dule 31 ught-line method. ctive interest method. the: 00,00 ornati