Anya Company disclosed the following accounts on December 31, 2020.                          12% Bond Payable-Due Jan. 1, 2023 Jan. 1, 2020                                                         Jan. 1, 2013     6,000,000 P3,000,000 face amount                         purchased at 90 &                          retired                                    2,700,000                                                      Discount on Bonds Payable Jan. 1, 2013        300,000       Answer and give computation on the following requirements: Compute the balance of bonds payable & discount on bonds payable on Dec. 31, 2020. The straight-line method of amortization is used. Compute the bond interest expenses for the year ended Dec. 31, 2020. Interest is payable semi-annually on Jan. 1 & July 1 Prepare adjusting entries on Dec. 31, 2020

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
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Anya Company disclosed the following accounts on December 31, 2020.

                         12% Bond Payable-Due Jan. 1, 2023

Jan. 1, 2020                                                         Jan. 1, 2013     6,000,000

P3,000,000 face amount                        

purchased at 90 &                         

retired                                    2,700,000            

 

                                       Discount on Bonds Payable

Jan. 1, 2013        300,000    

 

Answer and give computation on the following requirements:

  1. Compute the balance of bonds payable & discount on bonds payable on Dec. 31, 2020. The straight-line method of amortization is used.
  2. Compute the bond interest expenses for the year ended Dec. 31, 2020. Interest is payable semi-annually on Jan. 1 & July 1
  3. Prepare adjusting entries on Dec. 31, 2020
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