Exercise 14-9 Amortization table and accrued interest LO5SweetFish Corp. issued bonds with a par value of $920,000 and a five-year life on May 1, 2020. The contract interest rate is 11.50%.The bonds pay interest on October 31 and April 30. They were issued at a price of $903,072 when the market interest rate was12.00%. SweetFish Corp's year-end is December 31.a. Prepare an amortization table for these bonds that covers their entire life. Use the effective interest method of allocating interest.(Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positivevalues.)CashUnamortizedDiscountPeriodPeriod InterestDiscountInterestCarrying ValueEndingExpenseAmortizationPaidMay 1/20Oct 31/20|Apг 30/21Oct 31/21Apr 30/22Oct 31/22Apr 30/23Oct 31/23Apr 30/24Oct 31/24Apr 30/25Totals b. Prepare the journal entries that the issuer would make to record the entries on October 31, 2020; December 31, 2020; and April 30,2021. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)View transaction listJournal entry worksheet1>Record the payment of interest.Note: Enter debits before credits.DateGeneral JournalDebitCreditOctober 31, 2020Record entryClear entryView general journal

Formulas Used:- Cash Interest Paid = @5.75% of 920,000 Period Interest Expenses = @6% of Carrying…

SweetFish Corp. issued bonds with a par value of $920,000 and a five-year life on May 1, 2020. The contract interest rate is 11.50%. The bonds pay interest on October 31 and April 30. They were issued at a price of $903,072 when the market interest rate was 12.00%. SweetFish Corp's year-end is December 31.

SweetFish Corp. issued bonds with a par value of $920,000 and a five-year life on May 1, 2020. The contract interest rate is 11.50%. The bonds pay interest on October 31 and April 30. They were issued at a price of $903,072 when the market interest rate was 12.00%. SweetFish Corp's year-end is December 31.

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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