please, look at the question carefully. This is my 3rd time submitting the same question and I continue to get the wrong answer. Problem 14-05 (Part Level Submission)In each of the following independent cases, the company closes its books on December 31. (a)Headland Co. sells $497,000 of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021.Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to 0 decimal places, e.g. 38,548.)Schedule of Bond Discount AmortizationEffective-Interest MethodBonds Sold to YieldDate CashPaid InterestExpense DiscountAmortized CarryingAmount ofBonds3/1/20 $ $ $ $ 9/1/20 3/1/21 9/1/21 3/1/22 9/1/22 3/1/23 9/1/23 Prepare all of the relevant journal entries from the time of sale until December 31, 2021. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCredit The image appears to represent a series of accounting journal entries related to bonds for the year 2021. Here is the transcription of the entries and a brief explanation:**March 1, 2021:**- **Interest Payable:** (Credit) 27,308- **Cash:** (Debit) 19,800- **Discount on Bonds Payable:** (Credit) 7,508**September 1, 2021:**- **Interest Expense:** (Debit) 27,308- **Discount on Bonds Payable:** (Debit) 7,508- **Cash:** (Credit) 19,800**December 31, 2021:**- **Interest Expense:** (Debit) 9,251- **Discount on Bonds Payable:** (Debit) 2,624- **Interest Payable:** (Credit) 6,627### ExplanationThese entries reflect accounting for bond interest payments and discounts. Here's a breakdown:1. **Interest Payable and Cash Entries (March 1, 2021):** - The entry shows a credit to Interest Payable and a debit to Cash and Discount on Bonds Payable, reflecting the issuance of bonds and recording the interest due.2. **Interest Expense Entries (September 1, 2021):** - The second entry indicates the recording of interest expense. The debit to Discount on Bonds Payable and credit to Cash suggest the amortization of the bond discount and payment of interest.3. **Interest Expense and Payable Entries (December 31, 2021):** - The final set of entries records the interest expense at year-end. The debits to Interest Expense and Discount on Bonds Payable, and the credit to Interest Payable, indicate continued expense recognition and adjustment of payable accounts.This sequence of entries showcases the standard process of accounting for bond discounts and interest over time. **Date: 3/1/20**- **Account Titles and Explanation: Cash** - **Debit:** 441,511- **Account Titles and Explanation: Discount on Bonds Payable** - **Debit:** 55,489- **Account Titles and Explanation: Bonds Payable** - **Credit:** 497,000- **Account Titles and Explanation: Interest Expense** - **Debit:** 26,491- **Account Titles and Explanation: Cash** - **Credit:** 19,880- **Account Titles and Explanation: Discount on Bonds Payable** - **Credit:** 6,611---**Date: 3/1/21**- **Account Titles and Explanation: Interest Expense** - **Debit:** 26,887- **Account Titles and Explanation: Cash** - **Credit:** 19,800- **Account Titles and Explanation: Discount on Bonds Payable** - **Credit:** 7,087---**Explanation:**The table is a journal entry record, often used in accounting to document financial transactions. Each entry includes a date, an account title, and a debit or credit amount. Debits and credits are recorded for each transaction to ensure that the accounting equation (Assets = Liabilities + Equity) remains balanced.In the entries provided:- On 3/1/20, a transaction includes cash, bonds, and interest accounts. Significant entries are the issuance of bonds and the recording of interest expense.- On 3/1/21, another transaction records interest expenses, reflecting ongoing financial obligations.Each line represents how different accounts are affected by a financial activity, with debits and credits ensuring the correct balancing of financial records.

Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise debt to use it in the business operations of the organization. It is an agreement between the issuer and the holder to pay the interest on regular intervals and the principal amount on date of maturity of bonds. Face value of bonds: It is the par value or the value of the bond on the bond certificate. It is the value which is repaid by the organization to the holder of the bonds at maturity. Issue price of bonds: It is the price at which the bonds are actually issued by the organization. The issue price may be less than the face value or more than the face value. Interest expense: It is the interest which is incurred by the organization on the bonds issued at regular intervals.

In each of the following independent cases, the company closes its books on December 31. (a) Headland Co. sells $497,000 of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to 0 decimal places, e.g. 38,548.) Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield Date Cash Paid Interest Expense Discount Amortized Carrying Amount of Bonds 3/1/20 $ $ $ $ 9/1/20 3/1/21 9/1/21 3/1/22 9/1/22 3/1/23 9/1/23 Prepare all of the relevant journal entries from the time of sale until December 31, 2021. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Problem 14-05 (Part Level Submission)

In each of the following independent cases, the company closes its books on December 31.

(a)

Headland Co. sells $497,000 of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021.

Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to 0 decimal places, e.g. 38,548.)

Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield
Date	Cash Paid	Interest Expense	Discount Amortized	Carrying Amount of Bonds
3/1/20	$	$	$	$
9/1/20
3/1/21
9/1/21
3/1/22
9/1/22
3/1/23
9/1/23

Prepare all of the relevant journal entries from the time of sale until December 31, 2021. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit

The image appears to represent a series of accounting journal entries related to bonds for the year 2021. Here is the transcription of the entries and a brief explanation:

**March 1, 2021:**
- **Interest Payable:** (Credit) 27,308
- **Cash:** (Debit) 19,800
- **Discount on Bonds Payable:** (Credit) 7,508

**September 1, 2021:**
- **Interest Expense:** (Debit) 27,308
- **Discount on Bonds Payable:** (Debit) 7,508
- **Cash:** (Credit) 19,800

**December 31, 2021:**
- **Interest Expense:** (Debit) 9,251
- **Discount on Bonds Payable:** (Debit) 2,624
- **Interest Payable:** (Credit) 6,627

### Explanation

These entries reflect accounting for bond interest payments and discounts. Here's a breakdown:

1. **Interest Payable and Cash Entries (March 1, 2021):**
- The entry shows a credit to Interest Payable and a debit to Cash and Discount on Bonds Payable, reflecting the issuance of bonds and recording the interest due.

2. **Interest Expense Entries (September 1, 2021):**
- The second entry indicates the recording of interest expense. The debit to Discount on Bonds Payable and credit to Cash suggest the amortization of the bond discount and payment of interest.

3. **Interest Expense and Payable Entries (December 31, 2021):**
- The final set of entries records the interest expense at year-end. The debits to Interest Expense and Discount on Bonds Payable, and the credit to Interest Payable, indicate continued expense recognition and adjustment of payable accounts.

This sequence of entries showcases the standard process of accounting for bond discounts and interest over time.

**Date: 3/1/20**

- **Account Titles and Explanation: Cash**
- **Debit:** 441,511

- **Account Titles and Explanation: Discount on Bonds Payable**
- **Debit:** 55,489

- **Account Titles and Explanation: Bonds Payable**
- **Credit:** 497,000

- **Account Titles and Explanation: Interest Expense**
- **Debit:** 26,491

- **Account Titles and Explanation: Cash**
- **Credit:** 19,880

- **Account Titles and Explanation: Discount on Bonds Payable**
- **Credit:** 6,611

---

**Date: 3/1/21**

- **Account Titles and Explanation: Interest Expense**
- **Debit:** 26,887

- **Account Titles and Explanation: Cash**
- **Credit:** 19,800

- **Account Titles and Explanation: Discount on Bonds Payable**
- **Credit:** 7,087

---

**Explanation:**
The table is a journal entry record, often used in accounting to document financial transactions. Each entry includes a date, an account title, and a debit or credit amount. Debits and credits are recorded for each transaction to ensure that the accounting equation (Assets = Liabilities + Equity) remains balanced.

In the entries provided:

- On 3/1/20, a transaction includes cash, bonds, and interest accounts. Significant entries are the issuance of bonds and the recording of interest expense.
- On 3/1/21, another transaction records interest expenses, reflecting ongoing financial obligations.

Each line represents how different accounts are affected by a financial activity, with debits and credits ensuring the correct balancing of financial records.

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