The following amortization and interest schedule reflects the issuance of 10 year bonds by CMA Corporation on January 1, 2019, and the subsequent interest payment and charges. The Company’s year end is December 31, and the financial statements are prepared once yearly. (a) On the basis of schedule above, prepare the journal entry to record the issuance of bonds on January 1, 2019 (b) On the basis of the schedule above, prepare the journal entry or entries to reflect the bond transactions and accruals for 2019. (Interest is paid January 1) (c) On the basis of the schedule above, prepare the journal entry or entries to reflect the bond transactions and accruals for 2019. CMA Corporation does not use reversing entries

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
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Chapter8: Depreciation And Sale Of Business Property
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The following amortization and interest schedule reflects the issuance of 10 year bonds by CMA Corporation on January 1, 2019, and the subsequent interest payment and charges. The Company’s year end is December 31, and the financial statements are prepared once yearly.

(a) On the basis of schedule above, prepare the journal entry to record the issuance of bonds on January 1, 2019
(b) On the basis of the schedule above, prepare the journal entry or entries to reflect the bond transactions and accruals for 2019. (Interest is paid January 1)
(c) On the basis of the schedule above, prepare the journal entry or entries to reflect the bond transactions and accruals for 2019. CMA Corporation does not use reversing entries

Amortization Schedule
Amount
Year
Cash
Interest Unamortized
Carrying Value
1/1/2019
P11,000
P5,651
P94,349
2019
11,000 P11,322
5,329
94,671
2020
11,000
11,361
4,968
95,032
2021
11,000
11,404
4,564
95,436
2022
11,000
11,452
4,112
95,888
2023
11,000
11,507
3,605
96,395
2024
11,000
11,567
3,038
96,962
2025
11,000
11,635
2,403
97,597
2026
11,000
11,712
1,691
98,309
2027
11,000
11,797
894
99,106
2028
11,000
11,894
100,00
Transcribed Image Text:Amortization Schedule Amount Year Cash Interest Unamortized Carrying Value 1/1/2019 P11,000 P5,651 P94,349 2019 11,000 P11,322 5,329 94,671 2020 11,000 11,361 4,968 95,032 2021 11,000 11,404 4,564 95,436 2022 11,000 11,452 4,112 95,888 2023 11,000 11,507 3,605 96,395 2024 11,000 11,567 3,038 96,962 2025 11,000 11,635 2,403 97,597 2026 11,000 11,712 1,691 98,309 2027 11,000 11,797 894 99,106 2028 11,000 11,894 100,00
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