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Xonic Corporation issued $8.8 million of 20 yeor, 8 percent bonds on Apri, 2021, at to2. Interest is poid on March 31 and September 30
Xonic Corporation issued $8.8 million of 20 yeor, 8 percent bonds on Apri, 2021, at to2. Interest is poid on March 31 and September 30 of each year, and all of the bonds in the Issue mature on March 31, 2041, Xonic's facol year ends on December a1, Prepare the following journel entries. a. April 1, 2021, to record the issuance of the bonds. b. September 30,2021 , to pay interest and to amortize the bond premium. c. March 31, 2041, to pay interest, amortize the bond premlum, and retire the bonds at maturity (make two separate entries) Assume an adjusting entry was made on December 31,2040 , to recognize Interest from October 1 to December 31 d. What is the effect of amortizing the bond premlum on (i) annual net income and (2) annual net cash fow from operating activiei. (lonore possible income tax effects.) (tf no entry is required for a transactlon/event, seiect "No journal entry required in the firat account fleid. Einter your answars in doliers not in mililons, Complete this question by entering your answers in the tabs below. A. Aprii 1, 2021, to record the issuance of the bends: b. September 30, 2021, to pay interest and to amortize the bond premiam. c. Mareh 31, 2041, to poy imterest, amortize the bond premiom, and retire the boods at maturity (make two seporme entries). Amiame an adgusting entry was made on pecember 31,2040 , to recognize interest from Octobar 1 ty Pecrmber 31. Journal entry worksheet
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