Recording Bond Entries and Preparing an Amortization Schedule-Effective Interest Method, Premium Mitchell Inc issued 144, 6%, $1,000 bionds on january 1, 2020. The bonds pay cash interest semiannually each june 30, and December 31, and were issued to yield 5%. The bonds mature December 31, 2024, and the companyses the effective interest method to amorture bond discounts or premiums Required a. Determine the selling price of the bonds. Round amount to the nearest whale dollar. b. Prepare an amortization schedule for the full bond term c. Prepare journal entries on the following dates. 1 january 1, 2020, bond issuance 2 June 30, 2020, interest payment. 3. December 31, 2020, interest payment Bond Selling Price Amortization Schedule Journal Entries b. . Note: Round amounts in schedule to the nearest whole dollar. Use rounded amounts for later calculations in the schedule. Note: include any ret rounding difference for Bond Payable, Net in the interest expense amount for Dec 31, 2024 Cash Date Jan 1, 2020 SAU 20-30 1 Dec 31, 2020 June 30, 2021 Interest Expense Discount Amortization Bonds Payable, Net ON ONS ON ON OME 0x Ox ON 0x 0x 0x DN 1x 0% Ox b. Note: Round amounts in schedule to the nearest whole dollar. Use rounded amounts for later calculations in the schedule. Note: Include any net rounding difference for Bond Payable, Net in the interest expense amount for Dec. 31, 2024. Date Jan. 1, 2020 June 30, 2020 $ Dec. 31, 2020 June 30, 2021 Dec. 31, 2021 June 30, 2022 Dec. 31, 2022 June 30, 2023 Dec. 31, 2023 June 30, 2024 Dec. 31, 2024 Total $ Cash 0x $ 40 x T Interest Expense Discount Amortization Bonds Payable, Net $ 0x 0x 0x 0x 0x 0x 0x 0x 0x 0x 0x 0x $ 0x $ 0x 0x 0x 0x 0x 0x 0x 0x 0x 0 x $ 0x 0x 0x 0x 0x 0x 0x 0x 0x 0x 0x 0x 0x 0x ox 0x 0x 0x 0x Bo Selling Price a. Selling price of bonds $ Check Amortization Schedule 43,838 x Journal Entries . Note: List multiple debits or credits (when applicable) in alphabetical order. Note: Round your answers to the nearest whole dollar. Date 1. Jan. 1, 2020 Cash Cash Cash 2. June 30, 2020 Cash Cash Check Cash 3. Dec. 31, 2020 Cash Inventory Cash Account Name 47 42 42 ( X x X V X x Dr. 0x 0 0 0x 0x 0 0x 0x 0 Cr. 0 0x ox 0 0 0 x 0 0 0x 30 ml lin st m bun ce 2020 Cash 0, 202 31, 202 Inventory Equipment Land Deferred Revenue Bonds Payable Discount on Bonds Payable Discount and Debt Issuance Costs Premium on Bonds Payable. Cor Mar Fair Value Adjustment-Bonds Payable Note Payable Discount on Note Payable Premium on Note Payable Fair Value Adjustment-Note Payable Interest Payable Common Stock Paid-in Capital in Excess of Par-Common Stock Paid-in Capital-Stock Warrants Retained Earnings-Prior Period Adjustment Debt Conversion Expense Interest Expense Loss on Redemption of Bonds Gain on Redemption of Bonds Unrealized Gain or Loss-Income Unrealized Gain or Loss-OCI 4 ntries nabe >xxx x
