Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortizepremium or discount on interest dates and at year-end. (Round answers to O decimal places, e.g. 38,548.)Schedule of Bond Discount AmortizationEffective-Interest MethodBonds Sold to YieldCarryingCashInterestPremiumAmount ofPaidExpenseAmortizedBondsi$2$489,03625,86019,5616,299495,33525,86019,8136,047501,38225,86020,0555,805507,18725,86020,2875,573512,76025,86020,5105,350518,11025,86020,7245,13653.24625,86020,9304,930528,17625,86021,1274,733532,909* Difference due to rounding (b)Bonita Co. sells $431,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of thebonds is June 1, 2024. The bonds yield 8%. On October 1, 2021, Bonita buys back $137,920 worth of bonds for$144,920 (includes accrued interest). Give entries through December 1, 2022.Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortizepremium or discount on interest dates and at year-end. (Round answers to 0 decimal places, e.g. 38,548.)

Bond Accounting refers to the recording of bond related transactions i.e. issuance of bond at par,…

(b) Bonita Co. sells $431,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 8%. On October 1, 2021, Bonita buys back $137,920 worth of bonds for $144,920 (includes accrued interest). Give entries through December 1, 2022. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to 0 decimal places, e.g. 38,548.)

(b) Bonita Co. sells $431,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 8%. On October 1, 2021, Bonita buys back $137,920 worth of bonds for $144,920 (includes accrued interest). Give entries through December 1, 2022. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to 0 decimal places, e.g. 38,548.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ee 148.
Bonita Co. sells $399,000 of 12% bonds on June 1, 2025. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2029. The bonds yield 8%. On October 1, 2026, Bonita buys back $119,700 worth of bonds for $126,700 (includes accrued interest). Give entries through December 1, 2027. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to O decimal places, e.g. 38,548.) Date 6/1/25 12/1/25 6/1/26 12/1/26 6/1/27 12/1/27 6/1/28 Cash Paid $ Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield Interest Expense tA Premium Amortized A Carryin Value o Bonds
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please provide narration also for each entry
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