Splish Co. sells $404,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 10%. On October 1, 2021, Splish buys back $125,240 worth of bonds for $130,240 (includes accrued interest). Give entries through December 1, 2022. 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 O decimal places, e.g. 38,548.) Cash Paid 000 Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield Interest Expense Premium Amortized Carrying Amount of Bonds

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Chapter1: Financial Statements And Business Decisions
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Splish Co. sells $404,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the
bonds is June 1, 2024. The bonds yield 10%. On October 1, 2021, Splish buys back $125.240 worth of bonds for
$130,240 (includes accrued interest). Give entries through December 1, 2022.
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.)
Cash
Paid
Schedule of Bond Discount Amortization
Effective-Interest Method
Bonds Sold to Yield
Interest
Expense
Premium
Amortized
$
Carrying
Amount of
Bonds
Transcribed Image Text:Splish Co. sells $404,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 10%. On October 1, 2021, Splish buys back $125.240 worth of bonds for $130,240 (includes accrued interest). Give entries through December 1, 2022. 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.) Cash Paid Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield Interest Expense Premium Amortized $ Carrying Amount of Bonds
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