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On January 1,2024, the Ryder Company issued $480,000(face value) of eight-year bonds at $540,294 to...

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Accounting

On January 1,2024, the Ryder Company issued $480,000(face value) of eight-year bonds at $540,294 to yield an effective annual interest rate of 6%. The stated (face) annual interest rate is 8%, and interest will be paid semiannually on June 30 and December 31. The Ryder Company uses the effective interest method to amortize bond discounts or premiums.
Required:
a. Prepare the journal entry(ies) to record the issuance of the bonds on January 1,2024.
b. Prepare a bond premium amortization schedule for the first 2 years of the bond life using the effective interest method.
c. Prepare journal entries required on June 30 and December 31,2024.
d. On January 1,2026, the company redeemed all $480,000(face value) of the bonds at $504,000. Prepare the journal entries to record the bond redemption.
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