Problem 1 bond discount. Prepare the journal entries to record these events: 1. The issuance of the bonds on January 1, 2021 2. The accrual of interest and the discount amortization on December 31, 2021 3. The payment of interest on January 1, 2022
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- (b) Prepare an effective-interest amortization table for the first eight interest payments for these bonds. (c) The Bonds were redeemed on January 1, 2026 (after the interest had been paid and recorded) at 102. Prepare the journal entry for the redemption of the bonds.Record the issue of the bonds on July 31,2024. (List debit entry before credit entry. Record the payment of interest on January 31, 2025, assuming the semi-annual amortization amount for this interest period is \$895. (list all debit entries before credit entries Please answer all three requirements without image format answer thankuQuestions: 1. How much is the estimated purchase price of the bonds on January 1, 2021? 2. Compute the interest income for 2021. 3. Compute for the interest income for 2022. 4. Write all necessary journal entries from 2018 - 2020.
- 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1. 2a. Journalize the entry to record the first semiannual interest payment on December 31, 20Y1, and the amortization of the bond premium, using the straight-line method.Compute the price of $42,601,480 received for the bonds by using the present value tablesThe following amortization and interest schedule reflects the issuance of 10-year bonds by Wildhorse Corporation on January 1, 2019, and the subsequent interest payments and charges. The company's year-end is December 31, and financial statements are prepared once yearly. Year 1/1/2019 2020 2019 $12,500 $13,305 12,500 13,401 13,510 13,631 13,767 13,919 2021 2024 2025 2022 12,500 2023 12,500 12,500 12,500 12,500 14,280 12,500 14,493 14,731 2026 Amortization Schedule 2027 Cash Interest 2028 12,500 12,500 14,089 Amount Unamortized $14,126 13,321 12,420 11,410 10,279 9,012 7,593 6,004 4,224 2,231 Carrying Value $ 110,874 111,679 112,580 113,590 114,721 115,988 117,407 118,996 120,776 122,769 125,000 Click here to view factor tables. a. Indicate whether the bonds were issued at a premium or a discount.9, Journal entry worksheet: 1. Record the bond issue. (Jan. 01, 2021)2. Record the first semiannual interest payment. (June 30, 2021)3. Record the second semiannual interest payment. (Dec. 31, 2021)
- On August 1, 2022, Martinez Corp. issued $489,600, 6%, 10-year bonds at face value. Interest is payable annually on August 1. Martinez’s year-end is December 31. Prepare the journal entry to record the issuance of the bonds. Prepare the journal entry to record the accrual of interest on December 31, 2022. Date Account Titles and Explanation Debit Credit Dec. 31 enter an account title to record the accrual of interest on December 31, 2017enter an account title to record the accrual of interest on December 31, 2017Prepare a schedule of interest expense and bond amortization for 2025-2027. (Round answer to 2 decimal places, e.g. 38,548.25.) Date 1/1/25 $ 12/31/25 12/31/26 12/31/27 Cash Paid Schedule of Interest Expense and Bond Premium Amortization Effective-Interest Method $ Interest Expense $ Premium Amortized $ Carry Value ofDonna Clark Company issued $612,000 of 9%, 20-year bonds on January 1, 2025, at 101. Interest is payable semiannually on July 1 and January 1. Clark Company uses the straight-line method of amortization for bond premium or discount. Prepare the journal entries to record the following.
- On August 1, 2022, Martinez Corp. issued $489,600, 6%, 10-year bonds at face value. Interest is payable annually on August 1. Martinez’s year-end is December 31. Prepare the journal entry to record the issuance of the bonds. Date Account Titles and Explanation Debit Credit Aug. 1 enter an account title to record the issuance of the bonds on August 1enter an account title to record the issuance of the bonds on August 1Part 1 Prepare journal entries to the following. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) a. Issuance of the bonds on June 1, 2023 b. Payment of interest on December 1, 2023 c. Adjusting entry to accrue bond interest and discount amortization on January 31, 2024 d. Payment of interest on June 1, 2024 Assume JetCom Inventors Inc. has a January 31 year-end. View transaction list Journal entry worksheet 1 2 3 4 Record issued bond at discount. Note: Enter debits before credits. Date June 01, 2023 General Journal Debit Credit >Journal Entry Worksheet: 1. Record the bond issue on January 1, 2021.2. Record the first interest payment on December 31, 2021.