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Prepare the journal entry for payment of interest on april

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Reference no: EM133127613

Question - Sunland Corporation issued $320,000 of 5-year bonds on April 1, 2020. Interest is paid semi-annually on April 1 and October 1. Below is a partial amortization schedule for the first few years of the bond issue.

Semi-Annual
Interest Period

Interest
Payment

Interest
Expense

Amortization

Bond
Amortized Cost

Apr.1, 2020


$334,755

Oct. 1, 2020

$6,400

$5,021

$1,379

333,376

Apr. 1, 2021

6,400

5,001

1,399

331,977

Oct. 1, 2021

6,400

4,980

1,420

330,557

Apr. 1, 2022

6,400

4,958

1,442

329,115

Oct. 1, 2022

6,400

4,937

1,463

327,652

Apr. 1, 2023

6,400

4,915

1,485

326,167

Required -

Were the bonds issued at a discount or at a premium?

What is the bonds' face value?

What will the bonds' amortized cost be at the maturity date?

What will be the total interest payment over the five-year life of the bonds? Total interest expense?

Prepare the journal entry to record the issuance of the bond.

Prepare the journal entry for the first interest payment.

Prepare the adjusting journal entry on December 31, 2020, assuming this is Sunland's year end.

Prepare the journal entry for the payment of interest on April 1, 2021. Assume no reversing entries have been used.

Reference no: EM133127613

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