Question

Dimensional Media Inc. has a December 31 year-end. It showed the following partial amortization schedules regarding its two bond issues:
Bond Issue 1


Bond Issue 2


Required
Answer the following for each bond issue:
a. Were the bonds issued at a premium and/or discount?
b. Journalize the issuance of bond issue 1 and 2 on September 1, 2015, and May 1, 2014, respectively.
c. What is the contract interest rate for each bond issue?
d. What was the market interest rate at issuance for each bond?
e. Interest of how much is paid how often for each bond issue?
f. What is the term of each bond issue?
g. Show how each of the bonds would appear on the balance sheet at December 31, 2019.
h. Calculate the total bond interest expense that would appear on the income statement for the year ended December 31, 2020.
i. Independent of (a) through (h), assumes both bond issues were retired on December 1, 2019, at 101. Record theentries.


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  • CreatedJanuary 08, 2015
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