Sunland Company issued $470,000, 9 , 20 year bonds on January 1, 2020, at 104 Interest is payable annually on January 1 Sunland uses straight line amortization for bond premium or discount Prepare the journal entry to record the issuance of the bonds (Credit account titles are automatically indented when amount is entered Do not indent manually ) Date Account Titles and Explanation Debit Credit Jan 1, 2020 Prepare the journal entry to record the accrual of interest and the premium amortization on December 31, 2020 (Credit account titles are automatically indented when amount is entered Do not indent manually ) Date Account Titles and Explanation Debit Credit Dec 31, 2020 Prepare the journal entry to record the payment of interest on January 1, 2021 (Credit account titles are automatically indented when amount is entered Do not indent manually ) Date Account Titles and Explanation Debit Credit Jan 1, 2021 Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded (Credit account titles are automatically indented when amount is entered Do not indent manually ) Date Account Titles and Explanation Debit Credit Jan 1, 2040 Click if you would like to Show Work for this question Open Show Work

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 06, 2024

Sunland Company issued $470,000, 9%, 20-year bonds on January 1, 2020, at 104. Interest is payable annually on January 1. Sunland uses straight-line amortization for

Sunland Company issued $470,000, 9%, 20-year bonds on January 1, 2020, at 104. Interest is payable annually on January 1. Sunland uses straight-line amortization for bond premium or discount.

Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2020

Prepare the journal entry to record the accrual of interest and the premium amortization on December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2020

Prepare the journal entry to record the payment of interest on January 1, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2021

Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)