Question I https:\'edugen.wilcyplus.com edugen/shared\'assignmenttest qprint.uni

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Question I https:'edugen.wilcyplus.com edugen/shared'assignmenttest qprint.uni * Question 1 On January 1, 2017, Marigold Company purchased 12% bonds having a maturity value of$270,000, for $290,470.00. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Marigold Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Your answer is correct Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1, 2017 Debt Investments 90470.00 ash 1290470.00 Your answer is correct. Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.) Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method Cash Interest Premium Carrying Amount Date Received Revenue Amortized of Bonds $290470.0 1/1/18 132400,00 129047.0 1/1/19 (32400.00 28711.70 1/1/20 32400.028342.8 1/1/21 132400.00 127937.16 1/1/22 132400.00 27490.87 3353.00 3688.30 4057.13 87117.00 283428.70 279371.57 274908.73 269999.60 909.13 Your answer is partially correct. Prepare the journal entry to record the interest revenue and the amortization at December 31, 2017 (Round answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2017 |Interest Expense 3353.00 no answer of 2 3/25/2018, 12:04 PM

Explanation / Answer

c) Journal entry

Date accounts & explanation debit credit Dec 31,2017 Interest receivable 32400 Debt investment 3353 Interest revenue 29047 (To record interest revenue and amortization)

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