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The following amortization and interest schedule reflects the issuance of 10-year bonds by Blossom Corporation on January 1,2019 , and the subsequent interest payments and
The following amortization and interest schedule reflects the issuance of 10-year bonds by Blossom Corporation on January 1,2019 , and the subsequent interest payments and charges. The company's year-end is December 31, and financial statements are prepared once yearly. a. Indicate whether the bonds were issued at a premium or a discount. b. Indicate whether the amortization schedule is based on the straight-line method or the effective-interest method. c. Determine the stated interest rate and the effective-interest rate. The stated rate % The effective rate % d. On the basis of the schedule above, prepare the journal entry to record the issuance of the bonds on January 1, 2019. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) e. On the basis of the schedule above, prepare the journal entry or entries to record the bond transactions and accruals for 2019. (Interest is paid January 1.) (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) f. On the basis of the schedule above, prepare the journal entry or entries to record the bond transactions and accruals for 2026. Blossom Corporation does not use reversing entries. (Record entries in the order displayed in the problem statement. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
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