On January 1, 2020, Pearl Company sold 11% bonds having a maturity value of $500,000 for $559,889, which provides the bondholders with a 8% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Pearl Company allocates interest and unamortized discount or premium on the effective-interest basis. Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places, e. g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
January 1, 2020
Prepare a schedule of interest expense and bond amortization for 2020–2022. (Round answer to 0 decimal places, e. g. 38,548.)
Schedule of Interest Expense and Bond Premium Amortization
Effective-Interest Method
Date
1/1/20 $ $ $ $
12/31/20
12/31/21
12/31/22
Cash
Paid
Interest
Expense Premium
Amortized Carrying
Amount of Bonds
Prepare the journal entry to record the interest payment and the amortization for 2020. (Round answer to 0 decimal places, e. g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
December 31, 2020
Prepare the journal entry to record the interest payment and the amortization for 2022. (Round answer to 0 decimal places, e. g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
December 31, 2022