On April 1, 2021, Marigold Corporation issued $352.000, 5-year bonds. On this date, Shoreline Corporation puurchased the bondsfrom Marigold to earn interest. Interest is received semi-annually on April 1 and October 1 and Shoreline's year end is March 31Below is a partial amortization schedule for the first three interest periods of the bond issueSemi-AnnualInterestReceivedInterestInterest PeriodRevenueAmortizationBond Amortized CostApril 1. 2021$368.231October 1, 2021$7.040$5.523$1.517366.714April 1.20227.0405.5011.539365,175October 1, 20227.0405,4781,562363,613Were the bonds purchased at a discount or at a premium?Bonds purchased at aWhat is the face value of the bonds?Face value of the bonds seTextbook and MediaWhat will the bonds' amortized cost be at the maturity date?Bonds' amortized cost at the maturity dateeTextbook and Media/1 EWhat is the bonds' contractual interest rate? The market interest rate? (Round answers to 2 decimal places, eg 52.75)AnnualSemi-annualContractual interest rateMarket interest rateeTextbook and MedisPrepare the journal entries to record the purchase of the bonds the receipt of interest on October 1, 2021, the accrual of intereston March 31, 2022 and the receiot of interest on April12022 Cedit account tities reutomatically indented when the amount isentered. De not indent manuallyno entry isreguired select No Entry for the acunt ttes ond enter Ofor the amounts)DateAccount Titles and ExplanationDebitCredit(To recond purchase of investment)

The question is based on the concept of Financial Accounting. As per the Bartleby guidelines we are…

On April 1, 2021. Marigold Corporation issued $352.000,5-year bonds. On this date, Shoreline Corporation purchased the bonds from Marigold to earn interest Interest is received semi-annually on April 1 and October 1 and Shoreline's year end is March 31 Below is a partial amortization schedule for the frst three interest periods of the bond issue Semi Annual Interest Recelved Interest Interest Period Revenue Amortization Bond Amortized Cost April 1. 2021 $368.231 October 1, 2021 $7040 $5.523 $1.517 366,714 April 1.2022 7,040 5,501 1.539

On April 1, 2021. Marigold Corporation issued $352.000,5-year bonds. On this date, Shoreline Corporation purchased the bonds from Marigold to earn interest Interest is received semi-annually on April 1 and October 1 and Shoreline's year end is March 31 Below is a partial amortization schedule for the frst three interest periods of the bond issue Semi Annual Interest Recelved Interest Interest Period Revenue Amortization Bond Amortized Cost April 1. 2021 $368.231 October 1, 2021 $7040 $5.523 $1.517 366,714 April 1.2022 7,040 5,501 1.539

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 7P: Wilbury Corporation issued 1 million of 13.5% bonds for 985,071.68. The bonds are dated and issued...

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