Recording entries for bonds 1 answer below »

 
   

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadlines.  

Following is an amortization table for an issue of three-year bonds on January 1, 2011: Effective Contractual Carrying Carrying Value at Interest Interest Amortization Value End Year Beginning of Year Incurred to be Paid of Principal Of Year 2011 $105,154 $8,412 $10,000 $1,588 $103,566 2012 $103,566 $8,285 $10,000 $1,715 $101,851 2013 $101,851 $8,148 $10,000 $1,852 $100,000 Total $24,845 $30,000 $5,155 Required: Place you answer in the shaded boxes below with any computations to the right A. How much were the bonds sold for? B. What is the stated (contractual) rate of interest? C. What is the effective rate of interest? D. Record the entries necessary over the life of the bonds for the issuance, retirement and yearly interest accrual. You do not need to record thepaymentof interest. Date Account Title Debit Credit 1/1/11 Cash The accounts for the first entry have been entered Premium on Bonds Payable enter the amounts and record the remaining entries. Bonds Payable Start each entry opposite the date 12/31/11 12/31/12 12/31/13 12/31/13