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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.)

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.)

Intermediate Accounting: Reporting And Analysis
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
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 5P: Bats Corporation issued 800,000 of 12% face value bonds for 851,705.70. The bonds were dated and...
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Date /25 2/1/25 2/31/25 1/26 Account Titles and Explanation Cash Premium on Bonds Payable Bonds Payable Interest Expense Premium on Bonds Payable Cash Interest Expense Premium on Bonds Payable Interest Payable Interest Expense Interest Payable Premium on Bonds Payable Debit Credit
Transcribed Image Text:Date /25 2/1/25 2/31/25 1/26 Account Titles and Explanation Cash Premium on Bonds Payable Bonds Payable Interest Expense Premium on Bonds Payable Cash Interest Expense Premium on Bonds Payable Interest Payable Interest Expense Interest Payable Premium on Bonds Payable Debit Credit
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
Transcribed Image Text: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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