- On January 1 2022 Swifty Corporation Issued 3 880 000 Face Value 11 10 Year Bonds At 3 660 771 This Price Result 1 (57.16 KiB) Viewed 100 times
interest and the amortization of the discount on December 31, 2022"
Completed.
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
Swifty Corporation Bond Discount Amortization Effective Interest Method-Annual Interest Paymen Annual Interest Periods Interest to Be Paid Interest Expense to Be Recorded Discount Amortization Issue date 1 ta 426800 tA $ 439293 $ 12493 2 426800 440792 13992 دیا 426800 442471 15671
Unamortized Discount Bond Carrying Value 219229 $ 3660771 206736 3673264 192745 3687255 177074 3702926
Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2022. (Round answers to 0 decimal places, e.g. 15,250. 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 Dec. 31, 2022 Discount on Bonds Payable e Textbook and Media Assistance Used