70.2K

Verified Solution

Link Copied!

PLEASE HEP ME ON THIS QUESTION!!

On January 1, 2021, Surreal Manufacturing issued 510 bonds, each with a face value of $1,000, a stated interest rate of 3 percent paid annually on December 31, and a maturity date of December 31, 2023. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $495,849. Surreal uses the simplified effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare a bond amortization schedule. 2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2021 and 2022, the interest and face value payment on December 31, 2023 and the bond retirement. Assume the bonds are retired on January 1, 2023, at a price of 102. Complete this question by entering your answers in the tabs below. Prepare a bond amortization schedule. (Do not round intermediate calculations. Round your answers to the nearest whole dollar. sure that the Carrying value equals to face value of the bond in the last period. Interest expense in the last period should be calcu as Cash Interest (+)/() Increase in Bonds Payable, Net.) January 1, 2023, at a price of 102. Complete this question by entering your answers in the tabs below. Prepare a bond amortization schedule. (Do not round intermediate calculations. Round your answers to the nearest whole dollar. sure that the Carrying value equals to face value of the bond in the last period. Interest expense in the last period should be calc as Cash Interest (+)/() Increase in Bonds Payable, Net.) Journal entry worksheet 5 Record the issuance of 510 bonds at face value of $1,000 each for $495,849. Note: Enter debits before credits. 1 Record the issuance of 510 bonds at face value of $1,000 each for $495,849. 2 Record the interest payment on December 31, 2021. 3 Record the interest payment on December 31, 2022. 4 Record the interest and face value payment on December 31, 2023. 5 Record the retirement of the bonds at a quoted price of 102, assuming the bonds are retired on January 1, 2023. Note : O= journal entry has been entered

Answer & Explanation Solved by verified expert

See Answer