BU Curriculum Corporation issued $900,000 of 8% bonds on November 1, 2018, due on November 1,...
BU Curriculum Corporation issued $900,000 of 8% bonds on November 1, 2018, due on November 1, 2023. The interest is to be paid on Nov. 1 and May. 1. The bonds were sold to yield 10% effective annual interest. BU Curriculum Corporation closes its books annually on December 31.
(a) Complete an amortization schedule for the above bond (for all periods) in a similar format as below. (Round all answers to the nearest dollar.) Use the effective interest method.
| Date | Credit Cash | Debit Interest Expense | Credit Bond Discount | Carrying Amount of Bonds |
| Nov. 1, 2018 | (Use the PV Formula in Excel) | |||
|
May. 1, 2019 continue schedule (use Excel) |
(b) Prepare the journal entries for the following:
1. Nov. 1, 2018 bond issue
2. Adjusting entry for December 31, 2018 (Adjusting entry should cover 2 months)
3. May. 1, 2019 entry
4. Nov. 1, 2019 entry
5. Adjusting entry from December 31, 2019
(c) Compute the interest expense to be reported in the income statement for the year ended December 31, 2018 and December 31, 2019.
(d) Complete an amortization schedule for the above bond (for all periods) using the straight-line amortization method (entries are not required.)
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BU Curriculum Corporation issued $900,000 of 8% bonds on
November 1, 2018, due on November 1,...
BU curriculum corporation issued $900,000 of 8% bonds on November 1, 2018, due on November 1,...
BU curriculum corporation issued $900,000 of 8% bonds on November 1, 2018, due on November 1, 2023. The interest is to be paid twice a year on Nov. 1 and May 1. The bonds were sold to yield 10% effective annual interest. BU curriculum corporation closes its books annually on December 31. A. Complete an amortization schedule for the above bond (for all periods) in a similar format as below. (round all answers to nearest dollar.) Use the effective interest...
BU Curriculum Corporation issued $900,000 of 8% on November 1, 2018, due on November 1, 2023....
BU Curriculum Corporation issued $900,000 of 8% on November 1, 2018, due on November 1, 2023. The interest is to be paid twice a year on Nov. 1 and May 1. The bonds were sold to yield 10% effective annual interest. BU Curriculum Corporation closes its books annually on December 31. Date Credit Cash Debit Interest Expense Credit Bond Discount Carrying Amount of Bonds Nov. 1, 2018 May. 1, 2019 (continue schedule using excel) Complete an amortization schedule for...
BU curriculum corporation issued $900,000 of 8% bonds on November 1, 2018, due on November 1,...
BU curriculum corporation issued $900,000 of 8% bonds on November 1, 2018, due on November 1, 2023. The interest is to be paid twice a year on Nov. 1 and May 1. The bonds were sold to yield 10% effective annual interest. BU curriculum corporation closes its books annually on December 31. A.) Compute the interest expense to be reported in the income statement for the year ended December 31, 2018 and December 31, 2019 B.) Complete an amortization schedule...
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