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Sheridan Company issues $410,000 of 5-year, 6% bonds on January 1, 2021. Interest is paid annually. Click here to view the factor table. Present Value
Sheridan Company issues $410,000 of 5-year, 6% bonds on January 1, 2021. Interest is paid annually. Click here to view the factor table. Present Value of 1 Click here to view the factor table. Present Value of an Annuity of 1 (a) Your Answer Correct Answer (Used) X Your answer is incorrect. Assuming the market interest rate was 8% on the date of issue, record the issue of the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to O decimal places, e.g. 5,276.) Date Account Titles and Explanation Debit Credit Jan. 1, 2021 (b) Your Answer Correct Answer (Used) Your answer is partially correct. Prepare an effective interest amortization table for the bonds. (Round answers to 0 decimal places, e.g. 5,276.) SHERIDAN COMPANY Bond Discount Amortization Table Effective-Interest Method-Annual Interest Payments 6% Bonds Issued at market rate of 8% Interest Expense Discount Amortization terest Payment Bond Amortized Cos M. $ i $ $ LUME IUNI (c) Your Answer Correct Answer (Used) X Your answer is incorrect. Prepare the journal entries to record the first three interest payments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record interest payment.) (To record interest payment.) (To record interest payment.) (d) Your Answer Correct Answer (Used) X Your answer is incorrect. Assuming Sheridan has an October 31 year end, record the adjusting entry for interest on October 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Oct. 31, 2021 (To accrue interest expense.)
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