Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using a Discount Amartization Table (Straight Line) Panamint Candy Company prepared the following amortization table for $500,000 of S-year, 9.2% bonds issued and sold by

image text in transcribed
image text in transcribed
Using a Discount Amartization Table (Straight Line) Panamint Candy Company prepared the following amortization table for $500,000 of S-year, 9.2% bonds issued and sold by Panamint on January 1, 2025, for $469,000 Period Carrying Value At issue 469,000 472,100 06/30/25 12/31/25 06/30/26 Discount Discount Cash Interest on Bonds on Bonds Payment Expense Payable Payable (Credit) (Debit) (Credit) Balance 31,000 $23,000 $26,100 $3,100 27,900 23,000 26,100 3,100 24,800 23,000 26,100 3,100 21,700 23,000 26,100 3,100 18,600 23,000 26,100 3,100 15,500 23,000 26,100 3,100 12,400 23,000 26,100 3,100 9,300 23,000 26,100 3,100 6,200 23,000 26,100 3,100 3,100 23,000 26,100 3,100 0 12/31/26 06/30/27 12/31/27 06/30/28 475,200 478,300 481,400 484,500 487,600 490,700 493,800 496,900 500,000 12/31/28 06/30/29 12/31/29 Required 1. Prepare the entry to recognize the sale of the bonds on January 1, 2025. If an amount box does not require an entry, leave it blank 2025 Jan. 1 Record issuance of bonds at discount DES OG 10 Oo 12/31/29 23,000 26,100 3,100 0 500,000 Required: 1. Prepare the entry to recognize the sale of the bands on January 1, 2025. If an amount box does not require an entry, leave it blank, 2025 Jan. 1 Record issuance of bonds at discount 2. Prepare the entry to recognize the first interest payment on June 30, 2025. If an amount box does not require an entry, leave it blank. 2025 June 30 Record interest expense 3. Determine the interest expense for these bonds that Panamint will report on its 2027 income statement. 4. Indicate how these bonds will appear in Paramint's December 31, 2028, balance sheet. Panamint Candy Balance Sheet (partial) December 31, 2024 Bonds payable

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics In Minutes 200 Key Concepts Explained In An Instant

Authors: Niall Kishtainy

1st Edition

1782066470, 9781782066477

More Books

Students also viewed these Accounting questions