Question

In each of the following independent cases, the company closes its books on December 31.

Flounder Co. sells $467,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021.

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 0 decimal places, e.g. 38,548.)

Schedule of Bond Discount Amortization
Effective-Interest Method
Bonds Sold to Yield

Date Cash Paid Interest Expense Discount Amortized Carrying Amount of Bonds

3/1/20 $ $ $ $

9/1/20

3/1/21

9/1/21

3/1/22

9/1/22

3/1/23

9/1/23

Prepare all of the relevant journal entries from the time of sale until December 31, 2021. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date Account Titles and Explanation Debit Credit

3/1/20

3/1/20 9/1/20 12/31/20 3/1/219 /1/2112 /31/21

3/1/20 9/1/20 12/31/20 3/1/219 /1/2112 /31/21

3/1/21

3/1/209/1/2012/31/203/1/219/1/2112/31/21

3/1/209/1/2012/31/203/1/219/1/2112/31/21

Culver Co. sells $424,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 10%. On October 1, 2021, Culver buys back $131,440 worth of bonds for $138,440 (includes accrued interest). Give entries through December 1, 2022.

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 0 decimal places, e.g. 38,548.)

Schedule of Bond Discount Amortization
Effective-Interest Method
Bonds Sold to Yield

Date Cash Paid Interest Expense Premium Amortized Carrying Amount of Bonds

6/1/20 $ $ $ $

12/1/20

6/1/21

12/1/21

6/1/22

12/1/22

6/1/23

12/1/23

6/1/24

* Difference due to rounding

Prepare all of the relevant journal entries from the time of sale until December 31, 2022. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date Account Titles and Explanation Debit Credit

6/1/20

12/1/20

12/31/20

6/1/21

10/1/21

(To record interest expense and premium amortization)

10/1/21

(To record buy back of bonds)

12/1/21

12/31/21

6/1/22

12/1/22

Answer 1

Due to less time I had completed one questions of part both
Interest Payment (stated Rolex Book Value on Carveyting voordele Credit Balance in Bords Payable Account Payment. No Carrying van 3|1|2020 94/2010 3/1/201 912041 311/2022 . 9142022 3/42023 194442023 Inent Eup face Value (Effectie Rake X Credit Cash account Debit Interest Expense Account $ 093,350 $ 26455-85 23,300 26,642617 293,350 26839.70 23,300 27,049.00 23,350 23,977.02 3,330 27506,28 23,350 27755.66 Bond Amortization Schouk Flounder company Amortization of Debut Balance in Discount on Bonds Discount on bords Payable account Payable Account Credit Discount on Bords Payable 26069. 3105-82 2296390 329217 19671.74 34 89.70 16182.04 3699.08 1248292 3921.00 8561.94 4156.28 4465.66 4405.66 $467,000 467,00 467,000 467,000 467,600 467,000 1967,000 467,00 $ 440930.513 449,036.16 447, 308.24 450,217.96 45457.03 458,438.06 462,394.34 467,000 0.00 Note Interest ។ Principal $ 23,350 X 5.5823 467,000 X 0.66506. Total = $ 13039.8-523 = $_310.5&3 02 $ 440,930.593 Prof bonds face Volur $467,000 Stated Value = 23,3 To Mahouty period Payment frequency L Market / Effectte Rate 6 % 440,931 2 ev =n=7 16% of $1 = 5.58238 Present Value of $1 = n27, d= 6% (Prof $1) = 0.66506

Dale 2) 3/1/2020 94112020 3/42021 9/1/2021 Account litte Cash Dacount on bonds payable Bonds Payable Interest Eup Discount on bond payable Cash Interest Eup Discount on bonds payable Cash Interest Eup. Discount on bonds payable Cash Interest Eup Discount on bonds payable Cash Interest Eup. Discount on bonds Payable Cash Interest Eur Discount or bond payable Cash Int. Expense (1) Debit Geodet ($) 440,931 26,069 467,000 26456 3,106 23, 330 26,642 3292 293,310 26,840 3,496 23,350 27,049 3699 23,350 27,271 3921 23,350 27,506 ЧІ 23,350 27056 1406 23,350 3112022 3142022 3/1/2023 9/1/2023 Discount on bond Payable Cash