On January 1 2022 Swifty Corporation Issued 3 880 000 Face Value 11 10 Year Bonds At 3 660 771 This Price Result 1 (56.96 KiB) Viewed 104 times
On January 1, 2022, Swifty Corporation issued $3,880,000 face value, 11%, 10-year bonds at $3,660,771. This price resulted in an effective-interest rate of 12% on the bonds. Swifty uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest January 1. (a) Your answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1, 2022 Cash 3660771 Discount on Bonds Payable 219229 Bonds Payable 3880000
Prepare an amortization table through December 31, 2024 (three interest periods) for this bond issue. (Round answers to O decimal places, e.g. 15,250.) Swifty Corporation Bond Discount Amortization Effective-Interest Method-Annual Interest Payments Annual Interest Periods Interest Expense to Be Recorded Interest to Be Paid Discount Amortization Unamortized ssue date $ ta 1 $ ta $ $ N 3
ayments Unamortized Discount Bond Carrying Value ta $ $
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