DC Corporation starts its business in January 1, 2010 in marietta,GA to produce and sell mobile homes.

Fantastic news! We've Found the answer you've been seeking!

Question:

DC Corporation starts its business in January 1, 2010 in marietta,GA to produce and sell mobile homes. On January 1, 2010

,LDC Corporation issued $1,200,000 of ten-year, 7% bonds at an effective interest rate of 8%at a discount for 1,119,479.03. Interest on the bonds is payable annually on December 31.The fiscal year of the company is the calendar year.

1.Based on the above information, prepare the initial journal entry by LDC Corporation to record the issuance of bonds on January 1, 2010

. Please show supporting computations in Excel for your journal entry.

2.Suppose LDC Corporation uses straight-line method for bond amortization, prepare a bond amortization table on the worksheet for LDC

3.Based on the table in (2), prepare journal necessary journal entry(ies) for LDC for the following dates:

a.12/31/2010

b. 1/1/2011

c. 12/31/2014

d. 12/31/2019

e.1/1/2020

when LDC paid off its bonds payable.

4.Based on the table in (2), suppose LDC retires half of its bonds on October 1, 2015 at 102,prepare necessary journal entry(ies) for LDC for the following dates:

a. 9/30/2015

b. 10/1/2015

c. 12/31/2019

d. 1/1/2020 when LDC paid off its bonds payable.