Question
Sherri Corporation issued $800,000 of 12% bonds on April 1, 2018 for $851,705.70. The bonds are due March 31, 2022, were issued to yield 10%
Sherri Corporation issued $800,000 of 12% bonds on April 1, 2018 for $851,705.70. The bonds are due March 31, 2022, were issued to yield 10% and pay interest semiannually on September 30 and March 31. Sherri Corporation uses the effective interest method.
Required:
1. Prepare a bond interest expense and premium amortization schedule.
2. Assume the company retired the bonds on June 30, 2019, for $848,000, which includes accrued interest. Prepare the journal entries to record the bond retirement
Remarks:
1. You must use the attached Excel Worksheet below and submit it in the Canvas drop-box.
2. You may modify the excel worksheet as required. Must use excel for required computations.
3. Round answers to 2 decimal places.
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