eyPLUS Kimmel, Financial Accounting, 8e FINANCIAL ACCOUNTING (20 CALCULATOR STAN

Question

eyPLUS Kimmel, Financial Accounting, 8e FINANCIAL ACCOUNTING (20 CALCULATOR STANDARD VIEW PRINTER VERSION BACK NEXT ENT RESOURCES Exercise 10-22 10 Graded HW ise 10-24 Score Ayayai Corp. issued $460,000, 9%, 25-year bonds on January 1, 2017, for $418,246. This price resulted in an effective-interest rate of 10% on the bonds. Interest is payable annually on January 1, Ayayai uses the effective- interest method to amortize bond premium or discount. Results by Study Prepare the schedule using effective-interest method to amortize bond premium or discount of Ayayai Corp. (Round answers to 0 decimal places, e.g. 5,250.) Bond Interest Interest to Interest Expense Discount Unamortized Periods to Be RecordedAmo rtization Discount Carrying Value Be Paid Issue date s SHOW LIST OF ACCOUNTS VIDEO·SIMILAR EXERCISE LINK TO TEXT LINK TO TEXT Prepare the journal entry to record the issuance of the bonds. (Round answers to O decimal pla Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Reflect in ePortfolio MacBook Pro

Explanation / Answer

Period Interest to be paid Interest expense Discount amortization Unamortized discount Carrying value Issue date 41754 418246 1 41400 41825 425 41329 418671 2 41400 41867 467 40862 419138 Jan-1-17 Cash 418246 Discount on bonds payable 41754         Bonds payable 460000 Dec-31 Interest expense 41825         Discount on bonds payable 425          Interest payable 41400 Jan-01 Interest payable 41400          Cash 41400

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