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  3. ?carla co. sells $426,000 of 12% bonds on june 1,

?Carla Co. sells $426,000 of 12% bonds on June 1, 2017. The bonds pay interest...

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Accounting

?Carla Co. sells $426,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2021. The bonds yield 10%. On October 1, 2018, Carla buys back $140,580 worth of bonds for $145,580 (includes accrued interest).image

Prepare all of the relevant journal entries from the time of sale until the date indicated. Give entries through December 1, 2019. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)imageimage

Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield Cash Paid Interest Expensee Discount Amortized Carrying Amount of Bonds Date 453,532 25,560 25,560 25,560 25,560 25,560 25,560 25,560 25,560 22,676 22,532 22,381 22,222 22,055 21,880 21,695 21,506 2,884 3,028 3,179 3,338 3,505 3,680 3,864 4,054 450,648 447,620 444,441 441,103 437,598 433,918 430,054 426,000 12/1/18 12/1/19 6/1/20 12/1/20 6/1/21

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