Question

Marin Co. sells $409,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2021. The bonds yield 10%. On October 1, 2018, Marin buys back $126,790 worth of bonds for $131,790 (includes accrued interest). 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 o decimal places, e.g. 38,548.) Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield Cash Paid Date Interest Expense Carrying Amount of Bonds Discount Amortized 6/1/17 S 12/1/17 6/1/18 12/1/18 6/1/19 12/1/19 6/1/20 12/1/20 6/1/21 * Difference due to rounding Prepare all of the relevant journal entries from the time of sale until the date indicated. Give entries through December 1, 2019. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account tities and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation 6/1/17 12/1/17

Answer 1

Answer-

	Schedule Of Bond Discount Amortization Effective-Interst Method Bonds Sold to Yield
					Cash Paid (A)	Interest Paid (B)	Discount Amortized (C)	Caarying Amount of Bonds (D+B-A-C)
	06-01-2017	0	0	0	409000
12-01-2017	0	24540	0	433540
06-01-2018	0	26012	0	459552
12-01-2018	126790	27573	5000	355336
06-01-2019	0	21320	0	376656
12-01-2019	0	22599	0	399255
06-01-2020	0	23955	0	423210
12-01-2020	0	25393	0	448603
06-01-2021	0	26916	0	475519
	Journal Entry		Dr.	Cr.
06-01-2017	Cash		409000
		Bonds Payble		409000
12-01-2017	Interest Exp		24540
		Cash		24540
06-01-2018	Interest Exp		26012
		Cash		26012
10-01-2018	Bonds Payble		131790
		Amortization Premium		5000
		Cash		126790
12-01-2018	Interest Exp		27573
		Cash		27573
06-01-2019	Interest Exp		21320
		Cash		21320
12-01-2019	Interest Exp		22599
		Cash		22599
06-01-2020	Interest Exp		23955
		Cash		23955
12-01-2020	Interest Exp		25393
		Cash		25393
06-01-2021	Interest Exp		26916
		Cash		26916

Note- Figure are not discounted bcz question doesnt mention discounting is necessary.

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