Question

L-3101195&cmid=924868&page=6 Fidan AME ENGAGE Burroughs Corporation with December 31 yeed 482000, bonds toys on May and for each yw. One of the prenumscount is not the right to me This band data court or em conta Prepare the jour entry on May 1, 2020 10 the bord Dute Dent Credit May 1 . 409900 Discount on Bones 22100 Bords sed bond Preparaty on October 11, 2020, to records payment and the mention of the Da Den Crede Account Title and Explanation Interest Expense . Discount on Band Padition bond Prepare the entry on Dec,200 Date Admin 10x1 Don Bodi Bords 41200 tock O BI E Type here to search hp

Answer 1

Answer: Working Note Amortization Schedule Cash Interest Interest expenses Year @ 2.5% Amortization Balance in Discount Bonds Payable Carrying Value 0 $ 22,100 $ 432,000 $ 409,900 1 $ 8,640$ 10,248 $ 1,608$ 20,493 $ 432,000 $ 411,508 2 $ 8,640 $ 10,288 $ 1,648$ 18,845$ 432,000 $ 413,155 @ 2% The Bonds Issued At Discount Credit Journal Entries Date Accounts and Explanation May 1 Cash A/C Discount on Bonds A/C Bonds Payable A/C (To record issuance of Bonds) $ $ Debit 409,900 22,100 $ 432,000 Oct 31 $ 10,248 Interest Expenses A/C Discount on Bonds A/C Cash A/C $ $ 1,608 8,640 Dec 31 $ 3,429 Interest Expenses A/C Discount on Bonds A/c Cash A/C $ $ 549 2,880 Balance Sheet (Partial) Non Current Liabilities Bonds payable Unamortized Discount Book value $ 432,000 $ 19,943 $ 412,057