Question
Windsor Co. sells $492,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of
Windsor Co. sells $492,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021.
Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to 0 decimal places, e.g. 38,548.)
Schedule of Bond Discount Amortization | ||||||||
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| Carrying | ||||
3/1/20 | $ | $ | $ | $ | ||||
9/1/20 | ||||||||
3/1/21 | ||||||||
9/1/21 | ||||||||
3/1/22 | ||||||||
9/1/22 | ||||||||
3/1/23 | ||||||||
9/1/23 |
Prepare all of the relevant journal entries from the time of sale until December 31, 2021. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 0 decimal places e.g. 58,971. 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 amount is entered. Do not indent manually.)
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