CALCULATORPRINTER VERSIONBACK NEXT Exercise 17-3 On January 1, 2017, Bramble com

Question

CALCULATORPRINTER VERSIONBACK NEXT Exercise 17-3 On January 1, 2017, Bramble company pur hased 12% bonds having a maturity value of $270,000, for S290 470.00. The bonds provide the bondholders with a 10% vie d. They are dated January 1, 2017, and mature January 1 2022, with interest receivableanuary 1 o each year ramble Company uses the effective interest n th d to al ate u amortie decou t premium. The bonds are classified in the held-to-maturity category Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, e.o. 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.) Credit Date Account Titles and Explanation Jan. 1, 2017 Debit SHOW LIST OF ACCOUNTS Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.o. 2.525.25.) Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method PremiumCarrying Amount Amortized Cash Interest Revenue of Bonds Date Received Version 4.24.9

Explanation / Answer

Date Cash received Interest Rev. Premium Amortized Carrying amount of bonds 1/1/2017 $290,470 1/1/2018 $32,400 $29,047 $3,353 $287,117 1/1/2019 $32,400 $28,712 $3,688 $283,429 1/1/2020 $32,400 $28,343 $4,057 $279,372 1/1/2021 $32,400 $27,937 $4,463 $274,909 1/1/2022 $32,400 $27,491 $4,909 $270,000 1/1/2017 Debt Investment $290,470.00 Cash $290,470.00 31/12/2017 Cash $32,400.00 Debt Investment $3,353.00 Interest Revenue $29,047.00 31/12/2018 Cash $32,400.00 Debt Investment $3,688.30 Interest Revenue $28,711.70

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.