Exercise 10-22
Bridgeport Corp. issued $365,000,8%,25-year bonds on January 1, 2017, for $329,149.
This price resulted in an effective-interest rate of9% on the bonds. Interest is payable
annually on January 1. Bridgeport uses the effective-interest method to amortize bond
premium or discount. Prepare the schedule using effective-interest method to amortize bond premium or
discount of Bridgeport Corp..(Round answers to 0 decimal places, e.g. 5,250.)
Interest
Periods
Issue
date Interest
to
Be Paid Interest
Expense
to Be
Recorded $ Discount
Amortizatio
n
$ Unamortize
d
Discount $ Bond
Carrying
Value $ $ 1
2 SHOW LIST OF ACCOUNTS LINK TO TEXT
LINK TO TEXT Prepare the journal entry to record the issuance of the bonds.(Round answers to 0
decimal places, e.g. 5,275. Credit account titles are automatically indented
when amount is entered. Do not indent manually.)
Date Account Titles and
Explanation Debi Credi
t
t Jan.1, 2017 SHOW LIST OF ACCOUNTS LINK TO TEXT
LINK TO TEXT Prepare the journal entry to record the accrual of interest and the discount
amortization on December 31, 2017.(Round answers to 0 decimal places, e.g.
5,275. Credit account titles are automatically indented when amount is
entered. Do not indent manually.)
Date Account Titles and
Explanation Debi Credi
t
t Dec.31, 2017 SHOW LIST OF ACCOUNTS LINK TO TEXT
LINK TO TEXT Prepare the journal entry to record the payment of interest on January 1, 2018.(Round
answers to 0 decimal places, e.g. 5,275. Credit account titles are
automatically indented when amount is entered. Do not indent manually.)
Date
Jan.1, 2018 Account Titles and
Explanation Debi Credit
