thank so much
In the following two independent cases, the company closes its books on December 31: 1 Kingbird Inc. sells $1.83 million of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The bonds' due date is September 1, 2023. The bonds yield 10%. 2 Coronado Ltd. sells $6.00 million of 9% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The bonds due date is June 1, 2024. The bonds yield 8% On October 1, 2021. Coronado buys back $1.20 million worth of bonds for $2.03 million, including accrued interest. 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 For situation 1. use the effective interest method for discount and premium amortization and prepare any necessary amortization tables. (Hint: Refer to Chapter 3 for tips on calculating.) (Round answers to decimal places, eg: 5.275.) Schedule of Bond Discount Amortization Effective Interest Method Discount Interest Expense Amortized Date Cash Pald 3/1/20 $ 9/1/20 $ 3/1/21 9/1/21 3/1/22 9/1/20 5 3 3/1/21 9/1/21 3/1/22 9/1/22 3/1/23 9/1/23 e Textbook and Media List of Accounts Prepare all of the relevant journal entries from the time of sale until the date indicated. For situation 1. prepare the journal entries through December 31, 2021. Assume that no reversing entries were made. Use the amounts arrived at from using (1) factor tables. (2) a financial calculator, or (3) Excel function PV from the time of sale until the date indicated. Use the effective interest method for discount and premium amortization. (Hint: Refer to Chapter 3 for tips on calculating.) (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answers to decimal places, eg. 5.275. Credit account sites 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.) and enter for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 3/1/21 e Textbook and Media List of Accounts For situation 2. use the effective interest method for discount and premium amortization and prepare any necessary amortization tables. (Hint: Refer to Chapter 3 for tips on calculating.) (Round answers to decimal places, es 5.275.) Schedule of Bond Discount Amortization Effective Interest Method Date Cash Pald Interest Expense Premium Amortized 6/1/20 $ Schedule of Bond Discount Amortization Effective Interest Method Date Cash Pald Premium Amortized Interest Expense 6/1/20 $ 12/1/20 $ $ $ 6/1/21 12/1/21 6/1/22 12/1/22 rrrrrr 6/1/23 12/1/23 6/1/24 For situation 2 use the effective Interest method for discount and premium amortization and prepare any necessary amortization tables. (Hint: Refer to Chapter 3 for tips on calculating.) (Round answers to decimal places, es 3.275) Schedule of Bond Discount Amortization Effective Interest Method Premium Carrying Amount ish Pald Interest Expense Amortized of Bonds Prepare all of the relevant journal entries from the time of sale until the date indicated. For situation 2, prepare the journal entries through December 31, 2022. Assume that no reversing entries were made. Use the amounts arrived at from using the financial calculator. Use the effective interest method for discount and premium amortization. (Hint Refer to Chapter 3 for tips on calculating.) (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answers to decimal places, 13.5.275. 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.) Date Account Titles and Explanation Debit Credit 6/1/20 12/1/20 12/31/20 6/1/21 6/1/21 10/1/21 (To record payment of interest and amortization amount) 10/1/21 (To record reacquisition of bonds) 12/1/21 (To record reacquisition of bonds) 12/1/21 12/31/21 6/1/22 12/1/22
