The following amortization and interest schedule is for the issuance of 10-year bonds by Marigold Corporation...

The following amortization and interest schedule is for the issuance of 10-year bonds by Marigold Corporation on January 1, 2020, and the subsequent interest payments and charges. The company’s year end is December 31 and it prepares its financial statements yearly.

Amortization Schedule
				Amount	Carrying
Year		Cash	Interest	Unamortized	Amount
Jan. 1,	2020			$5,961	$91,039
Dec. 31,	2020	$8,730	$9,104	5,587	91,413
	2021	8,730	9,141	5,176	91,824
	2022	8,730	9,182	4,724	92,276
	2023	8,730	9,228	4,226	92,774
	2024	8,730	9,277	3,679	93,321
	2025	8,730	9,332	3,077	93,923
	2026	8,730	9,392	2,415	94,585
	2027	8,730	9,459	1,686	95,314
	2028	8,730	9,531	885	96,115
	2029	8,730	9,615	0	$97,000

Determine the stated interest rate and the effective interest rate. (Round answers to 0 decimal places, e.g. 15%.)

Stated Interest Rate		%
Effective Interest Rate		%

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List of Accounts

Based on the schedule above, prepare the journal entry to record the issuance of the bonds on January 1, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2020

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List of Accounts

Based on the schedule above, prepare the journal entry to reflect the bond transactions and accruals for 2020. (Interest is paid January 1.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2020

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List of Accounts

Based on the schedule above, prepare the journal entries to reflect the bond transactions and accruals for 2028. Marigold Corporation does not use reversing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

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ekkarill92 answered 1 year ago

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