las, assuming they (e) Prepare the journal entries related to the available-for-sale bonds for 2024. (f) Prepare the journal entries related to the available-for-sale bonds for 2026. (List all debit entries before credit entries. 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 O for the amounts.) No. (c) (d) (e) Date > Account Titles and Explanation (To record interest revenue.) (To record adjustment.) (f) eTextbook and Media List of Accounts (To record interest revenue.) (To record adjustment.) Debit C View Policies Current Attempt in Progress Presented below is an amortization schedule related to Sarasota Company's 5-year, $160,000 bond with a 6% interest rate and a 3% yield, purchased on December 31, 2023, for $181,983. Date Cash Received Interest Revenue Bond Premium Amortization Carrying Amount of Bonds 12/31/23 $181,983 12/31/24 $9,600 $5,459 $4,141 177,842 12/31/25 9,600 5,335 4,265 173,577 12/31/26 9,600 5,207 4,393 169,184 12/31/27 9,600 5,076 4,524 164,660 12/31/28 9,600 4,940 4,660 160,000 The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end. 12/31/24 12/31/25 12/31/26 12/31/27 12/31/28 Amortized cost $177,842 Fair value 177,300 175,500 171,000 $173,577 $169,184 $164,660 $160,000 165,700 160,000 (a) Prepare the journal entry to record the purchase of these bonds on December 31, 2023, assuming the bonds are classified as held-to-maturity securities. (b) Prepare the journal entry related to the held-to-maturity bonds for 2024. (c) Prepare the journal entry related to the held-to-maturity bonds for 2026. (d) Prepare the journal entry to record the purchase of these bonds, assuming they are classified as available-for-sale. (e) Prepare the journal entries related to the available-for-sale bonds for 2024. (f) Prepare the journal entries related to the available-for-sale bonds for 2026. (List all debit entries before credit entries. 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 O for the amounts.)

las, assuming they (e) Prepare the journal entries related to the available-for-sale bonds for 2024. (f) Prepare the journal entries related to the available-for-sale bonds for 2026. (List all debit entries before credit entries. 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 O for the amounts.) No. (c) (d) (e) Date > Account Titles and Explanation (To record interest revenue.) (To record adjustment.) (f) eTextbook and Media List of Accounts (To record interest revenue.) (To record adjustment.) Debit C View Policies Current Attempt in Progress Presented below is an amortization schedule related to Sarasota Company's 5-year, $160,000 bond with a 6% interest rate and a 3% yield, purchased on December 31, 2023, for $181,983. Date Cash Received Interest Revenue Bond Premium Amortization Carrying Amount of Bonds 12/31/23 $181,983 12/31/24 $9,600 $5,459 $4,141 177,842 12/31/25 9,600 5,335 4,265 173,577 12/31/26 9,600 5,207 4,393 169,184 12/31/27 9,600 5,076 4,524 164,660 12/31/28 9,600 4,940 4,660 160,000 The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end. 12/31/24 12/31/25 12/31/26 12/31/27 12/31/28 Amortized cost $177,842 Fair value 177,300 175,500 171,000 $173,577 $169,184 $164,660 $160,000 165,700 160,000 (a) Prepare the journal entry to record the purchase of these bonds on December 31, 2023, assuming the bonds are classified as held-to-maturity securities. (b) Prepare the journal entry related to the held-to-maturity bonds for 2024. (c) Prepare the journal entry related to the held-to-maturity bonds for 2026. (d) Prepare the journal entry to record the purchase of these bonds, assuming they are classified as available-for-sale. (e) Prepare the journal entries related to the available-for-sale bonds for 2024. (f) Prepare the journal entries related to the available-for-sale bonds for 2026. (List all debit entries before credit entries. 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 O for the amounts.)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 76E

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