ACCT $101-$ Chapter $10$ Homework

The homework for chapter $10$ will be completed manually. Complete the $2$ problems below on a JOURNAL FORM; answer all questions. Round answers to the nearest dollar.

You must use a journal form to record the transactions and show all calculations to receive crealit.

Problem # $1$

Hillside issues $$4,000,000,6\%,15-$year bonds dated January $1,2023.$ The bonds pay interest semi$-$annually on June $30$ and December $31.$ The bonds were issued at $$3,456,400.$

Record the journal entry to issue the bonds on January $1,2023.$

a$.$ Record the journal entry to pay the semi$-$annual interest payment and amortize the discount on June $30,2023.$

b$.$ Record the journal entry to pay the semi$-$annual interest payment and amortize the discount on Dec. $31,2023.$

On March $31,2029,$ Hillside calls the bonds at $101.$ Record the journal entry to call the bonds.

What is the total interest expense for the bonds for:

a$.$ One full year?

b$.$ The entire $15-$year life of the bond? $($if the bond had been held until maturity$)$

What is the carrying value of the bonds on:

a$.$ December $31,2023?$

b$.$ December $31,2024?$