Hi, question from accounting homework - picture is attached.
When writing the journal entries, here are the possible accounts to write in the table:
- Accounts Payable
- Bonds Payable
- Cash
- Discount on Bonds Payable
- Interest Expense
- Interest Payable
- Premium on Bonds Payable
Extracted text: Unger Autoparts Inc. issued $140,000 of 9%, 10-year bonds at a price of 84 on January 31, 2020. The market interest rate at the date of issuance was 11%, and the standard bonds pay interest semi-annually. 1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. 2. Record Unger's issuance of the bonds on January 31, 2020, and payment of the first semi-annual interest amount and amortization of the bonds on July 31, 2020. Explanations are not required. 1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. (Round your answers to the nearest whole dollar.) Unger Autoparts Amortization Table A B D Interest Payment Interest Expense (5.5% of Bond Discount (4.5% of Maturity Preceding Bond Carrying Amortization (B Account Balance Value) Bond Carrying Amount (S140,000 - D) Bond Discount Semi-annual Interest Date Amount) -A) (Preceding D - C) Jan. 31, 2020 July 31, 2020 Jan. 31, 2021 July 31, 2021 2. Record Unger's issuance of the bonds on January 31, 2020, and payment of the first semi-annual interest amount and amortization of the bonds on July 31, 2020. (Record debits first, then credits. Explanations are not required.) Start by recording the issuance of bonds on January 31, 2020. Date Accounts Debit Credit Jan. 31, 2020 Now, record the payment of the first semi-annual interest amount and amortization of the bonds on July 31, 2020. Date Accounts Debit Credit July 31, 2020