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On January 1, 2021, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a stated interest rate of 7 percent paid annually on December 31, and a maturity date of December 31, 2023. On the issue date, the market interest rate was 6.00 percent, so the total proceeds from the bond issue were $102,671. Methodical uses the simplified effective interest bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare a bond amortization schedule. 2-5. Prepare the required journal entries to record the bond issue, interest payments on December 31, 2021 and 2022, interest and face value payment on December 31, 2023, and bond retirement. Assume the bonds are retired on January 1, 2023, at a price of 102. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 5 Prepare the required journal entries to record the bond issue, interest payments on December 31, 2021 and 2022, interest and face value payment on December 31, 2023, and bond retirement. Assume the bonds are retired on January 1, 2023, at a price of 102. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar.) View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Record the retirement of the bonds at a quoted price of 102, assuming the bonds are retired on January 1, 2023. Date January 01, 2023 4 Record entry 5 General Journal Clear entry < Req 1 Debit Credit View general journal Req 2 to 5 > > Show less

On January 1, 2021, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a stated interest rate of 7 percent paid annually on December 31, and a maturity date of December 31, 2023. On the issue date, the market interest rate was 6.00 percent, so the total proceeds from the bond issue were $102,671. Methodical uses the simplified effective interest bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare a bond amortization schedule. 2-5. Prepare the required journal entries to record the bond issue, interest payments on December 31, 2021 and 2022, interest and face value payment on December 31, 2023, and bond retirement. Assume the bonds are retired on January 1, 2023, at a price of 102. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 5 Prepare the required journal entries to record the bond issue, interest payments on December 31, 2021 and 2022, interest and face value payment on December 31, 2023, and bond retirement. Assume the bonds are retired on January 1, 2023, at a price of 102. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar.) View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Record the retirement of the bonds at a quoted price of 102, assuming the bonds are retired on January 1, 2023. Date January 01, 2023 4 Record entry 5 General Journal Clear entry < Req 1 Debit Credit View general journal Req 2 to 5 > > Show less

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 16E
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Subject: acounting 

On January 1, 2021, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a stated interest rate of 7 percent paid annually on December 31, and a maturity date of December 31, 2023. On the issue date, the market interest rate was 6.00 percent, so the total proceeds from the bond issue were $102,671. Methodical uses the simplified effective interest bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare a bond amortization schedule. 2-5. Prepare the required journal entries to record the bond issue, interest payments on December 31, 2021 and 2022, interest and face value payment on December 31, 2023, and bond retirement. Assume the bonds are retired on January 1, 2023, at a price of 102. Complete this question by entering your answers in the tabs below. Req 1 Prepare the required journal entries to record the bond issue, interest payments on December 31, 2021 and 2022, interest and face value payment on December 31, 2023, and bond retirement. Assume the bonds are retired on January 1, 2023, at a price of 102. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar.) Req 2 to 5 View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Date January 01, 2023 Record the retirement of the bonds at a quoted price of 102, assuming the bonds are retired on January 1, 2023. 4 Record entry 5 General Journal Clear entry < Req 1 Debit Credit View general journal Req 2 to 5 > Show less
Transcribed Image Text:On January 1, 2021, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a stated interest rate of 7 percent paid annually on December 31, and a maturity date of December 31, 2023. On the issue date, the market interest rate was 6.00 percent, so the total proceeds from the bond issue were $102,671. Methodical uses the simplified effective interest bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare a bond amortization schedule. 2-5. Prepare the required journal entries to record the bond issue, interest payments on December 31, 2021 and 2022, interest and face value payment on December 31, 2023, and bond retirement. Assume the bonds are retired on January 1, 2023, at a price of 102. Complete this question by entering your answers in the tabs below. Req 1 Prepare the required journal entries to record the bond issue, interest payments on December 31, 2021 and 2022, interest and face value payment on December 31, 2023, and bond retirement. Assume the bonds are retired on January 1, 2023, at a price of 102. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar.) Req 2 to 5 View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Date January 01, 2023 Record the retirement of the bonds at a quoted price of 102, assuming the bonds are retired on January 1, 2023. 4 Record entry 5 General Journal Clear entry < Req 1 Debit Credit View general journal Req 2 to 5 > Show less
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