You must use a journal form to record the transactions and show all calculations to receive credit.
Question:
You must use a journal form to record the transactions and show all calculations to receive credit.
Hillside issues $4,000,000, 6%, 15-year bonds dated January 1, 2020. The bonds pay interest semi-annually on June 30 and December 31. The bonds were issued at $3,456,448.
1. Record the journal entry to issue the bonds on January 1, 2020.
2. a. Record the journal entry to pay the semi-annual interest payment and amortize the discount on June 30, 2020. b. Record the journal entry to pay the semi-annual interest payment and amortize the discount on Dec. 31, 2020.
3. On March 31, 2026, Hillside calls the bonds at 101. Record the journal entry to call the bonds.
4. What is the total interest expense for the bonds for: a. One full year? b. The entire fifteen year life of the bond? (if the bond had been held until maturity)
5. What is the carrying value of the bonds on: a. December 31, 2020? b. December 31, 2021?
2) Ellis issues $250,000, 6.5%, 5-year bonds dated January 1, 2020. The bonds pay interest semi-annually on June 30 and December 31. The bonds were issued at $255,333.
1. Record the journal entry to issue the bonds on January 1, 2020.
2. a. Record the journal entry to pay the semi-annual interest payment and amortize the premium on June 30, 2020. b. Record the journal entry to pay the semi-annual interest payment and amortize the premium on Dec. 31, 2020.
3. On September 1, 2023, Ellis calls the bonds at 99. Record the journal entry to call the bonds.
4. What is the total interest expense for the bonds for: a. One full year? b. The entire five-year life of the bond? (if the bond had been held until maturity)
5. What is the carrying value of the bonds on: a. December 31, 2020? b. December 31, 2021?
Discovering Advanced Algebra An Investigative Approach
ISBN: 978-1559539845
1st edition
Authors: Jerald Murdock, Ellen Kamischke, Eric Kamischke