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Bond interest and discount amortization. Logan Corporation

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Bond interest and discount amortization.
Logan Corporation issued $800,000 of 8% bonds on October 1, 2010, due on October 1, 2015. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective annual interest. Logan Corporation closes its books annually on December 31.

(a) Complete an amortization schedule for the above bond (for all periods) in a similar format as below. (Round all answers to the nearest dollar.) Use the effective-interest method

Date Credit cash debit interest expense credit bond discount carrying amount of bonds
oct 1, 2010 $738,224
april 1, 2011
.... continue schedule in excel

(b) Prepare the journal entries for the following:
1. October 1, 2010 bond issue
2. Adjusting entry for December 31, 2010 (adjusting entry should cover 3 months)
3. April 1, 2011 entry
4. October 1, 2011 entry
5. Adjusting entry from December 31, 2011

(c) Compute the interest expense to be reported in the income statement for the year ended December 31, 2010 and December 31, 2011.
Submitted: 5 years ago.
Category: Homework
Expert:  Neo replied 5 years ago.

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Customer: replied 5 years ago.
Relist: Incomplete answer.
under (b) entries are missing #1-5

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