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28 Sep 2019
On January 1,2018, Swan Company issued bonds with the followingcharacteristics: Face Value (per bond) $ 1,000 Number of bonds issued 2,000 Coupon (stated) rate 7% Maturity date 5 Interest payments Annually Prevailing rate of interest in the market on January 1, 2018
Date Interest Payment Interest Expense Amortization Carrying Value 1/1/2018 $ 1,920,145.80 12/31/2018 $ 140,000.00 $ 153,611.66 $ 13,611.66 $ 1,933,757.46 12/31/2019 $ 140,000.00 $ 154,700.60 $ 14,700.60 $ 1,948,458.06 12/31/2020 $ 140,000.00 $ 155,876.64 $ 15,876.64 $ 1,964,334.70 12/31/2021 $ 140,000.00 $ 157,146.78 $ 17,146.78 $ 1,981,481.48 12/31/2022 $ 140,000.00 $ 158,518.52 $ 18,518.52 $ 2,000,000.00
8%
Provide the December 31, 2021 journal entry
On January 1,2018, Swan Company issued bonds with the followingcharacteristics: | ||||||||||||||||||||||||||||||||||||
Face Value (per bond) | $ 1,000 | |||||||||||||||||||||||||||||||||||
Number of bonds issued | 2,000 | |||||||||||||||||||||||||||||||||||
Coupon (stated) rate | 7% | |||||||||||||||||||||||||||||||||||
Maturity date | 5 | |||||||||||||||||||||||||||||||||||
Interest payments | Annually | |||||||||||||||||||||||||||||||||||
Prevailing rate of interest in the market on January 1, 2018
| 8% |
Provide the December 31, 2021 journal entry |
Trinidad TremblayLv2
28 Sep 2019