Refer to the photo On December 31, 2020, Whitfield Corp. issued $ 400,000 of 10% bonds, due on December 31,2025. Interest is to be paid semi-annually on June 30 and December 31. The bonds were sold ata market value of $432,444 to yield 8% effective annual interest. Whitfield has a calendar yearend.Required:1. Complete the following amortization schedule for the dates indicated. Round all answersto the nearest dollar. Use the effective-interest method.Carrying amountof bondsCash interestInterest expensePremiumpaidAmortizationDec. 31,2020$432,444June 30, 2021Dec. 31, 2021Prepare the journal entry for Whitfield at December 31, 2021, to record the payment of6 months' interest (from June 30 to December 31) and related expense.DebitCreditAssume instead that Whitfield is using the straight line method to amortize the bondpremium. What would be the carrying amount of the bonds at December 31, 2021?

Interest expense = Previous period's Carrying amount of bonds * 8% * 6/12 Premium Amortization…

On December 31, 2020, Whitfield Corp. issued $ 400,000 of 10% bonds, due on December 31, 2025. Interest is to be paid semi-annually on June 30 and December 31. The bonds were sold at a market value of $432,444 to yield 8% effective annual interest. Whitfield has a calendar year end. Required: 1. Complete the following amortization schedule for the dates indicated. Round all answers to the nearest dollar. Use the effective-interest method. Interest expense Carrying amount of bonds Cash interest Premium paid Amortization Dec. 31,2020 $432,444 June 30, 2021 Dec. 31, 2021 Prepare the journal entry for Whitfield at December 31, 2021, to record the payment of 6 months’ interest (from June 30 to December 31) and related expense. Debit Credit Assume instead that Whitfield is using the straight line method to amortize the bond premium. What would be the carrying amount of the bonds at December 31, 2021? i

On December 31, 2020, Whitfield Corp. issued $ 400,000 of 10% bonds, due on December 31, 2025. Interest is to be paid semi-annually on June 30 and December 31. The bonds were sold at a market value of $432,444 to yield 8% effective annual interest. Whitfield has a calendar year end. Required: 1. Complete the following amortization schedule for the dates indicated. Round all answers to the nearest dollar. Use the effective-interest method. Interest expense Carrying amount of bonds Cash interest Premium paid Amortization Dec. 31,2020 $432,444 June 30, 2021 Dec. 31, 2021 Prepare the journal entry for Whitfield at December 31, 2021, to record the payment of 6 months’ interest (from June 30 to December 31) and related expense. Debit Credit Assume instead that Whitfield is using the straight line method to amortize the bond premium. What would be the carrying amount of the bonds at December 31, 2021? i

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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