Vaughn Corporation wished to raise money for a series of upcoming projects. On July 1, 2020, the company issued bonds with a face value of $5,645,000 due in 5 years, paying interest at a face rate of 9% on January 1 and July 1 each year. The bonds were issued to yield 7%. Vaughn used the effective interest method of amortization for bond discounts or premiums. The companys year-end was September 30. 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.

Calculate the premium or discount on the bonds. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and answers to 0 decimal places, e.g. 5,275.)

Choose the answer from the menu in accordance to the question statement DiscountPremium on bond

$

Enter your answer in accordance to the question statement

Prepare a complete Bond Premium/Discount Amortization Schedule (i.e. all five years) for Vaughn Corporation. (Round answers to 0 decimal places, e.g. 5,275.)

Date		Cash Paid		Interest Expense		PremiumDiscount Amortized		Carrying Amount
1-Jul-2020								$
1-Jan-2021		$		$		$
1-Jul-2021
1-Jan-2022
1-Jul-2022
1-Jan-2023
1-Jul-2023
1-Jan-2024
1-Jul-2024
1-Jan-2025
1-Jul-2025
		$		$		$

Prepare the journal entry to record the issue of the bonds. (Round answer to 0 decimal places, e.g. 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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
July 1, 2020

Prepare any required accrual entry at September 30, 2020. (Round answer to 0 decimal places, e.g. 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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Sept. 30, 2020