Vaughn Co. sells $409,000 of 12% bonds on June 1, 2025. The bonds pay interest on December 1 and June 1. The due date of thebonds is June 1, 2029. The bonds yield 10%. On October 1, 2026, Vaughn buys back $126,790 worth of bonds for$131,790 (includes accrued interest). Give entries through December 1, 2027.Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortizepremium or discount on interest dates and at year-end. (Round answers to 0 decimal places, e.g. 38,548.)Date6/1/2512/1/256/1/2612/1/266/1/27$CashPaid0$Schedule of Bond Discount AmortizationEffective-Interest MethodBonds Sold to YieldInterestExpense0$PremiumAmortized0$CarryinValue oBonds

Calculate cash proceeds on issuance:Maturity value of bonds payable = FV$409,000Interest Rate…

Answered: Vaughn Co. sells $409,000 of 12% bonds…

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Vaughn Co. sells $409,000 of 12% bonds on June 1, 2025. The

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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Ee 148.
Bonita Co. sells $399,000 of 12% bonds on June 1, 2025. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2029. The bonds yield 8%. On October 1, 2026, Bonita buys back $119,700 worth of bonds for $126,700 (includes accrued interest). Give entries through December 1, 2027. 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.) Date 6/1/25 12/1/25 6/1/26 12/1/26 6/1/27 12/1/27 6/1/28 Cash Paid $ Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield Interest Expense tA Premium Amortized A Carryin Value o Bonds
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pm.100.
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