Question
In: Accounting
On January 1, 2020, Marigold Company purchased 12% bonds having a maturity value of $270,000, for...
On January 1, 2020, Marigold Company purchased 12% bonds having a maturity value of $270,000, for $290,470.00. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Marigold Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.
1.Prepare the journal entry at the date of the bond purchase.
2.Prepare a bond amortization schedule.
3.Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020.
4.Prepare the journal entry to record the interest revenue and the amortization at December 31, 2021.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
On January 1, 2020, Riverbed Company purchased 12% bonds, having a maturity value of $276,000 for...
On January 1, 2020, Riverbed Company purchased 12% bonds, having
a maturity value of $276,000 for $296,924.88. The bonds provide the
bondholders with a 10% yield. They are dated January 1, 2020, and
mature January 1, 2025, with interest received on January 1 of each
year. Riverbed Company uses the effective-interest method to
allocate unamortized discount or premium. The bonds are classified
as available-for-sale category. The fair value of the bonds at
December 31 of each year-end is as follows....
On January 1, 2020, Indigo Company purchased 12% bonds having a maturity value of $310,000, for...
On January 1, 2020, Indigo Company purchased 12% bonds having a
maturity value of $310,000, for $333,502.59. The bonds provide the
bondholders with a 10% yield. They are dated January 1, 2020, and
mature January 1, 2025, with interest received on January 1 of each
year. Indigo Company uses the effective-interest method to allocate
unamortized discount or premium. The bonds are classified in the
held-to-maturity category.
Prepare the journal entry at the date of the bond purchase.
(Enter answers to...
On January 1, 2020, Larkspur Company purchased 12% bonds, having a maturity value of $275,000 for...
On January 1, 2020, Larkspur Company purchased 12% bonds, having
a maturity value of $275,000 for $295,849.07. The bonds provide the
bondholders with a 10% yield. They are dated January 1, 2020, and
mature January 1, 2025, with interest received on January 1 of each
year. Larkspur Company uses the effective-interest method to
allocate unamortized discount or premium. The bonds are classified
as available-for-sale category. The fair value of the bonds at
December 31 of each year-end is as follows....
On January 1, 2020, Swifty Company purchased 12% bonds having a maturity value of $230,000, for...
On January 1, 2020, Swifty Company purchased 12% bonds having a
maturity value of $230,000, for $247,437.40. The bonds provide the
bondholders with a 10% yield. They are dated January 1, 2020, and
mature January 1, 2025, with interest received on January 1 of each
year. Swifty Company uses the effective-interest method to allocate
unamortized discount or premium. The bonds are classified in the
held-to-maturity category.
Prepare the journal entry at the date of the bond purchase.
(Enter answers to...
On January 1, 2020, Sarasota Company purchased 10% bonds having a maturity value of $380,000, for...
On January 1, 2020, Sarasota Company purchased 10% bonds having
a maturity value of $380,000, for $410,343.38. The bonds provide
the bondholders with a 8% yield. They are dated January 1, 2020,
and mature January 1, 2025, with interest received on January 1 of
each year. Sarasota Company uses the effective-interest method to
allocate unamortized discount or premium. The bonds are classified
in the held-to-maturity category. Prepare the journal entry at the
date of the bond purchase.Prepare a bond amortization...
On January 1, 2020, Sheridan Company purchased 11% bonds, having a maturity value of $301,000 for...
On January 1, 2020, Sheridan Company purchased 11% bonds, having
a maturity value of $301,000 for $324,415.24. The bonds provide the
bondholders with a 9% yield. They are dated January 1, 2020, and
mature January 1, 2025, with interest received on January 1 of each
year. Sheridan Company uses the effective-interest method to
allocate unamortized discount or premium. The bonds are classified
as available-for-sale category. The fair value of the bonds at
December 31 of each year-end is as follows....
On January 1, 2020, Sandhill Company purchased 8% bonds having a maturity value of $400,000, for...
On January 1, 2020, Sandhill Company purchased 8% bonds having a
maturity value of $400,000, for $433,699.52. The bonds provide the
bondholders with a 6% yield. They are dated January 1, 2020, and
mature January 1, 2025, with interest received on January 1 of each
year. Sandhill Company uses the effective-interest method to
allocate unamortized discount or premium. The bonds are classified
in the held-to-maturity category.
Prepare the journal entry at the date of the bond purchase.
(Enter answers to...
On January 1, 2020, Sheffield Company purchased 8% bonds having a maturity value of $240,000, for...
On January 1, 2020, Sheffield Company purchased 8% bonds having
a maturity value of $240,000, for $260,219.71. The bonds provide
the bondholders with a 6% yield. They are dated January 1, 2020,
and mature January 1, 2025, with interest received on January 1 of
each year. Sheffield Company uses the effective-interest method to
allocate unamortized discount or premium. The bonds are classified
in the held-to-maturity category.
On January 1, 2020, Oriole Company purchased 11% bonds, having a maturity value of $328,000 for...
On January 1, 2020, Oriole Company purchased 11% bonds, having a
maturity value of $328,000 for $353,515.61. The bonds provide the
bondholders with a 9% yield. They are dated January 1, 2020, and
mature January 1, 2025, with interest received on January 1 of each
year. Oriole Company uses the effective-interest method to allocate
unamortized discount or premium. The bonds are classified as
available-for-sale category. The fair value of the bonds at
December 31 of each year-end is as follows....
On January 1, 2020, Ayayai Company purchased 8% bonds having a maturity value of $360,000, for...
On January 1, 2020, Ayayai Company purchased 8% bonds having a
maturity value of $360,000, for $390,329.57. The bonds provide the
bondholders with a 6% yield. They are dated January 1, 2020, and
mature January 1, 2025, with interest received on January 1 of each
year. Ayayai Company uses the effective-interest method to allocate
unamortized discount or premium. The bonds are classified in the
held-to-maturity category.
Prepare the journal entry at the date of the bond purchase.
(Enter answers to...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- An investor is considering purchasing a Treasury bond with a 20 year maturity, an 8% coupon...
- Write a program that copies the contents of one file to a destination file. This program...
- how to conduct a marketing mix for 3d crest white strips
- Is big data analytics used for service innovation at Amazon? If so, please write a brief...
- A shrink-fit process has been used to enhance the pressure carrying capacity of a cylinder. During...
- Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000 and...
- The Blossom Department of Transportation has issued 25-year bonds that make semiannual coupon payments at a...
ADVERTISEMENT