On January 1, 2021, a company issues $760,000 of 8% bonds, due in nine years,...
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Accounting
On January 1, 2021, a company issues $760,000 of 8% bonds, due in nine years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 9%, the bonds will issue at $713,792.
Date
Cash Paid
Interest Expense
Change in Carrying Value
Carrying Value
01/01/2021
06/30/2021
$30,400
$24,983
$5,417
708,375
12/31/2021
30,400
24,793
5,607
702,768
Required:1. Fill in the blanks in the amortization schedule below: (Round your answers to the nearest dollar amount. Enter all amounts as positive values.)
2. Record the bond issue on January 1, 2021, and the first two semi-annual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.)
1. Record the bond issue on January 1, 2021.
2. Record the semi-annual interest payment on June 30, 2021.
3. Record the semi-annual interest payment on December 31, 2021.
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