On January 1, 2020, Grouper Company purchased 12% bonds having a maturity value of $350,000, for $376,535.18. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Grouper Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, e.g. 2,525.25. 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, 2020 enter an account title to record the transaction on January 1, 2020 enter a debit amount enter a credit amount enter an account title to record the transaction on January 1, 2020 enter a debit amount enter a credit amount eTextbook and Media List of Accounts Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.) Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method Date Cash Received Interest Revenue Premium Amortized Carrying Amount of Bonds 1/1/20 $enter a dollar amount rounded to 2 decimal places $enter a dollar amount rounded to 2 decimal places $enter a dollar amount rounded to 2 decimal places $enter a dollar amount rounded to 2 decimal places 1/1/21 enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places 1/1/22 enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places 1/1/23 enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places 1/1/24 enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places 1/1/25 enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places eTextbook and Media List of Accounts Assistance Used Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020. (Round answers to 2 decimal places, e.g. 2,525.25. 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, 2020 enter an account title to record the transaction on December 31, 2020 enter a debit amount enter a credit amount enter an account title to record the transaction on December 31, 2020 enter a debit amount enter a credit amount enter an account title to record the transaction on December 31, 2020 enter a debit amount enter a credit amount eTextbook and Media List of Accounts Prepare the journal entry to record the interest revenue and the amortization at December 31, 2021. (Round answers to 2 decimal places, e.g. 2,525.25. 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, 2021 enter an account title to record the transaction on December 31, 2021 enter a debit amount enter a credit amount enter an account title to record the transaction on December 31, 2021 enter a debit amount enter a credit amount enter an account title to record the transaction on December 31, 2021 enter a debit amount

On January 1, 2020, Grouper Company purchased 12% bonds having a maturity value of $350,000, for $376,535.18. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Grouper Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, e.g. 2,525.25. 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, 2020 enter an account title to record the transaction on January 1, 2020 enter a debit amount enter a credit amount enter an account title to record the transaction on January 1, 2020 enter a debit amount enter a credit amount eTextbook and Media List of Accounts Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.) Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method Date Cash Received Interest Revenue Premium Amortized Carrying Amount of Bonds 1/1/20 $enter a dollar amount rounded to 2 decimal places $enter a dollar amount rounded to 2 decimal places $enter a dollar amount rounded to 2 decimal places $enter a dollar amount rounded to 2 decimal places 1/1/21 enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places 1/1/22 enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places 1/1/23 enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places 1/1/24 enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places 1/1/25 enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places eTextbook and Media List of Accounts Assistance Used Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020. (Round answers to 2 decimal places, e.g. 2,525.25. 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, 2020 enter an account title to record the transaction on December 31, 2020 enter a debit amount enter a credit amount enter an account title to record the transaction on December 31, 2020 enter a debit amount enter a credit amount enter an account title to record the transaction on December 31, 2020 enter a debit amount enter a credit amount eTextbook and Media List of Accounts Prepare the journal entry to record the interest revenue and the amortization at December 31, 2021. (Round answers to 2 decimal places, e.g. 2,525.25. 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, 2021 enter an account title to record the transaction on December 31, 2021 enter a debit amount enter a credit amount enter an account title to record the transaction on December 31, 2021 enter a debit amount enter a credit amount enter an account title to record the transaction on December 31, 2021 enter a debit amount

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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Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2020	enter an account title to record the transaction on January 1, 2020	enter a debit amount	enter a credit amount
	enter an account title to record the transaction on January 1, 2020	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.)

Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method
Date	Cash Received	Interest Revenue	Premium Amortized	Carrying Amount of Bonds
1/1/20	$enter a dollar amount rounded to 2 decimal places	$enter a dollar amount rounded to 2 decimal places	$enter a dollar amount rounded to 2 decimal places	$enter a dollar amount rounded to 2 decimal places
1/1/21	enter a dollar amount rounded to 2 decimal places	enter a dollar amount rounded to 2 decimal places	enter a dollar amount rounded to 2 decimal places	enter a dollar amount rounded to 2 decimal places
1/1/22	enter a dollar amount rounded to 2 decimal places	enter a dollar amount rounded to 2 decimal places	enter a dollar amount rounded to 2 decimal places	enter a dollar amount rounded to 2 decimal places
1/1/23	enter a dollar amount rounded to 2 decimal places	enter a dollar amount rounded to 2 decimal places	enter a dollar amount rounded to 2 decimal places	enter a dollar amount rounded to 2 decimal places
1/1/24	enter a dollar amount rounded to 2 decimal places	enter a dollar amount rounded to 2 decimal places	enter a dollar amount rounded to 2 decimal places	enter a dollar amount rounded to 2 decimal places
1/1/25	enter a dollar amount rounded to 2 decimal places	enter a dollar amount rounded to 2 decimal places	enter a dollar amount rounded to 2 decimal places	enter a dollar amount rounded to 2 decimal places

eTextbook and Media

List of Accounts

Assistance Used

Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020. (Round answers to 2 decimal places, e.g. 2,525.25. 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, 2020	enter an account title to record the transaction on December 31, 2020	enter a debit amount	enter a credit amount
	enter an account title to record the transaction on December 31, 2020	enter a debit amount	enter a credit amount
	enter an account title to record the transaction on December 31, 2020	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Prepare the journal entry to record the interest revenue and the amortization at December 31, 2021. (Round answers to 2 decimal places, e.g. 2,525.25. 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, 2021	enter an account title to record the transaction on December 31, 2021	enter a debit amount	enter a credit amount
	enter an account title to record the transaction on December 31, 2021	enter a debit amount	enter a credit amount
	enter an account title to record the transaction on December 31, 2021	enter a debit amount

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