Ripkin Company issues 9%, five-year bonds dated January 1, 2017, with a $320,000 par value. The bonds
Question:
Ripkin Company issues 9%, five-year bonds dated January 1, 2017, with a $320,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $332,988. Their annual market rate is 8% on the issue date.
Required
1. Calculate the total bond interest expense over the bonds' life.
2. Prepare a straight-line amortization table like Exhibit 14.11 for the bonds' life.
3. Prepare the journal entries to record the first two interest payments.
Exhibit 14.11
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Step by Step Answer:
Part 1 Ten payments of 14400 144000 Par value at maturity 320000 Total repaid 464000 Less amount bo...View the full answer
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Related Book For 
Fundamental Accounting Principles
ISBN: 978-1259536359
23rd edition
Authors: John Wild, Ken Shaw, Barbara Chiappett
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