Question

Part D Discussion and accounting entries [discussion typed, double-spaced; accounting entries on accounting or lined paper or excel spreadsheet. Attach both to back of assignmentl 10 marks Antigonish Corp. Bond Amortization Schedule Series B, 10-year Bonds, issued January 1, 2014 Amortization Schedule Interest Year Cash Unamortized Amount Carrying Amount Jan. 1, 2014 Dec. 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 $11,000 $11,000 11,000 $11,000 11,000 $11,000 $11,000 11,000 $11,000 $11,000 11,361 11,404 11.452 11,507 11,567 11,635 11,712 11,797 11,894 S5,651 5,329 4,968 4,564 4,112 3,605 3,038 2,403 1,691 894 S94,349 94,671 95,032 95,436 95,888 96,395 96,962 97,597 98,309 99,106 100,000 Required: i. Indicate whether Antigonish issued the bonds at a premium or discount and explain how you arrived at your answer using the amortization schedule. 1 markl Are the bonds amortized using the straight-line method or effective interest method? Explain how you arrived at your answer. Are both amortization methods accepted for financial reporting purposes? 12 marksl ii. iii. What are the stated interest rate and the effective interest rate? 2 marks] iv. Prepare the journal entry Antigonish made to record the bond issue on January 1, 2014 1 mark] v. Prepare the journal entry(ies) to recognize the bond transactions and accruals for 2014. (Interest is paid January 1 and Antigonish has a Dec. 31 year end)2 marks] Prepare the journal entry(ies) to recognize the bond transactions and accruals for 2022. Note that the company does not use reversing entries. [2 marks] vi.

Answer 1