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Wildhorse Corporation issued $2.82 million of 7-year, 1% bonds dated January 1, 2021, for $2,466,277. The market interest rate when the bonds were issued was
Wildhorse Corporation issued $2.82 million of 7-year, 1% bonds dated January 1, 2021, for $2,466,277. The market interest rate when the bonds were issued was 3%. Interest is payable semi-annually on January 1 and July 1. Wildhorse has a December 31 year end. Prepare an amortization schedule for the first three interest payments. (Round answers to O decimal places, eg. 5,276) WILDHORSE CORPORATION Bond Amortization Table Effective Interest Method-Semi-Annual Interest Payments 1% Bonds Issued at market rate of 3% Interest Payment Interest Expense Discount Amortization Date Bond Amortize $ $ $ Jan. 1. 2021 July 1. 2021 Jan. 1. 2022 July 1. 2022 Account Titles and Explanation Date July 1, 2021 Debit Credit (To record interest payment.) Prepare the adjusting journal entry on December 31, 2021, to accrue the interest expense. (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 entero for the amounts) Date Account Titles and Explanation Dec. 31, 2021 Debit Credit (To accrue interest expense.) NWP Assessment Prepare the journal entry for the payment of interest on January 1, 2022. (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 Ofor the amounts.) Date Account Titles and Explanation Jan. 1, 2022 Debit Credit (To record interest payment.)
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