80.2K

Verified Solution

Link Copied!

Larkspur Ltd. issued $ 670,000 of 15-year, 8.50% bonds on January 1, 2022, when the market interest rate was 7.50%. The cash received at the issuance of the bond was $ 729,727.97. Interest is payable semi-annually on July 1 and January 1. Larkspur has a December 31 year end. Prepare a bond amortization schedule for the first four interest periods, using the effective-interest method. (Round answers to 2 decimal places, eg. 15.75.) LARKSPUR LTD. Bond Premium Amortization Schedule Effective-Interest Method Semi-Annual Interest Period Interest Payment Interest Expense Amortization Issue Date, Jan. 1. 2022 $ $ $ July 1.2022 Jan. 1. 2023 Jan. 1, 2023 July 1, 2023 Jan. 1, 2024 Record the issue of the bonds and the first interest payment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to 2 decimal places, eg. 15.75.) Date Account Titles and Explanation Debit Credit Jan. 1 July 1 Record the accrual of the interest on December 31, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Round answers to 2 decimal places, eg. 15.75.) Date Account Titles and Explanation Debit Credit Dec. 31 Show the balance sheet presentation of the bonds at December 31, 2022. (Round answers to 0 decimal places, eg. 5,125.) LARKSPUR LTD. Balance Sheet (Partial) $ TA $

Answer & Explanation Solved by verified expert

See Answer