On January 1, 2018, Marigold Corp. purchased $1,710,000 of 6-year, 3% bonds for $1,619,581 to yield
On January 1, 2018, Marigold Corp. purchased $1,710,000 of 6-year, 3% bonds for $1,619,581 to yield a market interest rate of 4%. Interest is received semi-annually on July 1 and January 1. Marigold’s year end is September 30. Marigold intends to hold the bonds until January 1, 2024, the date the bonds mature. The bonds’ trading value was $1,646,000 on September 30, 2018.
Prepare a bond amortization schedule for the term of the bonds. (Round answers to O decimal places, e.g. 5,275.) Semi- Annual Interest Period Interest Received Interest Revenue Premium Amortization Amortized Cost Jan. 1 2018 July 1 2018 Jan. 1 2019 July 1 2019 Jan. 1 2020 July 1 2020 Jan. 1 2021 July 1 2021 Jan. 1 2022 July 1 2022 Jan. 1 2023 July 1 2023 Jan. 1 2024 Prepare the entry to record the receipt of interest on July 1, 2018. (Credit account titles are au required, select “No Entry” for the account titles and enter o for the amounts. Round an Date Account Titles and Explanation Debit Credit July 1 LINK TO TEXT Prepare any adjusting entries required at September 30, 2018. (Credit account titles are autor required, select “No Entry” for the account titles and enter o for the amounts. Round an Date Account Titles and Explanation Debit Credit Sept. 30 Show the financial statement presentation of the bonds at September 30, 2018. (Round answers to MARIGOLD CORP. Statement of Financial Position (Partial) LINK TO TEXT Prepare the entry to record the maturity of the bonds on January 1, 2024. (Credit account titles are entry is required, select “No Entry” for the account titles and enter O for the amounts. Round Date Account Titles and Explanation Debit Credit Jan. 1