Question

Question 10 View Policies Show Attempt History Current Alternatin Progress Saylor Casold $3.000.000,8%, 10 year bonds on january 1, 2022. The bonds were date anuary 1, 2022 and pay interest on January 1. The companyies straight-line amortization on bond premiums and discounts Financial statements are prepared annually Your answer is correct. Prepare the journal entries to record the nuance of the bond assuming the poldat: (1109 and 1298. (Credit account titles are automaticall amount is entered. Do not indent manually) No Date Account Titles and Explanation Debit 1 1/1/22 Cash 2 um cach e Textbook and Media List of Accounts * Your anwwer is incorrect Prepare amortition table for i ace of the bondsvold 103 for the first vee interestments

Answer 1

Bond sold at 103 & 98 Journal entry to record issue of bond Date Account Title and Explanation Debit credit $ 3,090,000 01/01/2022 Cash ( 3000,000 x 103%) Bond Payable Premium On issue of Bonds $ $ 3,000,000 90,000 Jan-22 Cash ( 3000,000 x 98%) Discount On issue of Bonds Bond Payable $ $ 2,940,000 60,000 $ 3,000,000 Premium Interest expense (B) AC Amortization (C) = 90000/10 103 Interest and Bond Amortization Schedule Date Cash Paid (A) (3,000,000 x 8%) 1.00 2.00 $ 3.00 $ 4.00 $ Unamortized premium Previous-C 90,000 81,000 72,000 $ 63,000 Bond Carrying Value Previous-C $ 3,090,000 3,081,000 3,072,000 $ 3,063,000 240,000 240,000 240,000 $ $ $ 231,000 231,000 231,000 $ $ $ 9,000 9,000 9,000 Interest expense Au-C Discount Amortization (C) = 60,000/10 98 Interest and Bond Amortization Schedule Date Cash Paid (A) (3,000,000 x 8%) 1.00 2.00 $ 3.00 $ 4.00 $ Unamortized discount Previous - 60,000 54,000 48,000 $ 42,000 $ Bond Carrying Value Previous + c 2,940,000 $ 2,946,000 2,952,000 $ 2,958,000 240,000 $ 240,000 $ 240,000 $ 246,000 $ 246,000$ 246,000 $ 6,000 6,000 6,000

Date Account Title and Explanation Debit credit 1 12/31/2022 Interest Expense ( 240,000 - 9,000) R Premium On Bond Payable ( 90,000/10) Interest payable ( 3,000,000 x 8%) $ $ 231,000 9,000 240,000 2 12/31/2022 246,000 Interest Expense ( 156,000 +26,000) Discount On issue of Bonds(( 60,000/10) Interest payable ( 3,000,000 x 8%) 6,000 240,000