On January 1, 2024, NFB Visual Aids issued $660,000 of its 20-year, 8% bonds. The...

Transcribed Image Text:

On January 1, 2024, NFB Visual Aids issued $660,000 of its 20-year, 8% bonds. " The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. NFB Visual Aids records interest expense at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2024, the fair value of the bonds was $550,000 as determined by their market value in the over-the-counter market. General (risk-free) interest rates did not change during 2024. Required: 1-a. Determine the price of the bonds at January 1, 2024. 1-b to 4. Prepare the necessary journal entries. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1. FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) ces Complete this question by entering your answers in the tabs below. Req 1A Req 1B to 4 Prepare the necessary journal entries. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final answers to the nearest whole dollar. View transaction list View journal entry worksheet No Date General Journal 1 January 01, 2024 Cash Discount on bonds payable Bonds payable 2 June 30, 2024 Interest expense Discount on bonds payable Cash 3 December 31, 2024 Interest expense 4 December 31, 2024 Discount on bonds payable Cash Loss on bonds payable (unrealized, OCI) Fair value adjustment < Req 1A Req 19 to 1 Debit Credit 660,000 On January 1, 2024, NFB Visual Aids issued $660,000 of its 20-year, 8% bonds. " The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. NFB Visual Aids records interest expense at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2024, the fair value of the bonds was $550,000 as determined by their market value in the over-the-counter market. General (risk-free) interest rates did not change during 2024. Required: 1-a. Determine the price of the bonds at January 1, 2024. 1-b to 4. Prepare the necessary journal entries. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1. FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) ces Complete this question by entering your answers in the tabs below. Req 1A Req 1B to 4 Prepare the necessary journal entries. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final answers to the nearest whole dollar. View transaction list View journal entry worksheet No Date General Journal 1 January 01, 2024 Cash Discount on bonds payable Bonds payable 2 June 30, 2024 Interest expense Discount on bonds payable Cash 3 December 31, 2024 Interest expense 4 December 31, 2024 Discount on bonds payable Cash Loss on bonds payable (unrealized, OCI) Fair value adjustment < Req 1A Req 19 to 1 Debit Credit 660,000