On July 1, 2021, Sheridan Satellites Corporation issued $1,400,000 of 10 -year, 7% bonds to...
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On July 1, 2021, Sheridan Satellites Corporation issued $1,400,000 of 10 -year, 7% bonds to yield a market interest rate of 6%. The bonds pay semi-annual interest on July 1 and January 1 . Sheridan has a December 31 year end and records adjusting entries annually. Sheridan received $1,504,148 when issuing the bonds. 1. Prepare an amortization table through January 1, 2023 (three interest periods) for this bond issue. Round all amounts to the nearest dollar. 2. Record the issue of the bonds on July 1,2021 . 3. Prepare the adjusting entry on December 31,2021 , to accrue the interest on the bonds. 4. Show the statement of financial position presentation of the liabilities at December 31, 2021
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On July 1, 2021, Sheridan Satellites Corporation issued $1,400,000 of 10 -year, 7% bonds to yield a market interest rate of 6%. The bonds pay semi-annual interest on July 1 and January 1 . Sheridan has a December 31 year end and records adjusting entries annually. Sheridan received $1,504,148 when issuing the bonds. 1. Prepare an amortization table through January 1, 2023 (three interest periods) for this bond issue. Round all amounts to the nearest dollar. 2. Record the issue of the bonds on July 1,2021 . 3. Prepare the adjusting entry on December 31,2021 , to accrue the interest on the bonds. 4. Show the statement of financial position presentation of the liabilities at December 31, 2021 