Book Amortize discount by interest method Instructions Present Value Tables Chart of Accounts Journal Additional Question Final Question Instructions On the first day of its fiscal year, Ebert Company issued $35,000,000 of 10-year, 10% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at market (effective) interest rate of 12%, resulting in Ebert receiving cash of $30,985,360. The company uses the interest method Required: a. Journalize the entries to record the following transactions. Refer to the Chart of Accounts for exact wording of account titles 1. Sale of the bonds 2. First semiannual interest payment, including amortization of discount. Round to the nearest dollar 3. Second semiannual interest payment, including amortization of discount. Round to the nearest dollar b. Compute the amount of the bond interest expense for the first year. c. Explain why the company was able to issue the bonds for only $30,985,360 rather than for the face amount of $35,000,000 Check My Work Previous Amortize discount by interest method - . . " AIN LPG Atuftional umation Final Question + 000870 cm 670000 " 53000 64 ENITAL BMORE " " . T A 3 3 4 5 #10 E R T T x 6 ANE 47 8 Y U THE 301 1+ 1 9 6a -O O P D F G H J K L 1 C V B < > N M .V H command option City Book Amortize decount by interest method atructions Piss V Tall Chart A Journal Additional Overton Fimal Question Qation of empt JOURNAL BO 2 3 4 .. 8 N 9 5 6 7- 8 m W E R T Y U 1 S 9 I O D F G H J K L x C H mmand > B N M " -A Save$112 ACCOUNTING COUATION 14 o - + P t F >> ? T command T option 44 13 eBook Amortize discount by interest method Instructions Present Value Tables Chart of Accounts Instructions Present Value Tables Chart of Accounts Journal Additional Question Journal Additional Shaded cells have feedback arding of acpe b. Compute the amount of the bond interest expense for the first year Annual interest paid S Plus discount amortized interest expense for first year S Check My Work #3 80 " a 24 $ S4 4 % 84 5 95 Points 1013 All work saved MacPhok Als 96 "O 8 = 7 86 & NO 8 Dil N nstructions Present Value Tables Chart of Accounts Journal Additional Question Final Question structions n the first day of its fiscal year, Ebert Company issued $35,000,000 of 10-year, 10% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a arket (effective) interest rate of 12%, resulting in Ebert receiving cash of $30,985.360. The company uses the interest method. Required: a. Journalize the entries to record the following transactions. Refer to the Chart of Accounts for exact wording of account titles 1. Sale of the bonds 2. First semiannual interest payment, including amortization of discount. Round to the nearest dollar 3. Second semiannual interest payment, including amortization of discount. Round to the nearest dollar b. Compute the amount of the bond interest expense for the first year. c. Explain why the company was able to issue the bonds for only $30,985,360 rather than for the face amount of $35,000,000. Instructions Present Value Tables Present Value of $1 at Compound Interest Due in n Periods Periods 4.0% 4.5% 5% 5.5% 6% 6.5% 7% 1 0.96154 0.95694 0.95238 0.94787 0.94340 0.93897 0.93458 2 0.92456 0.91573 0.90703 0.89845 0.89000 0.88166 0.87344 3. 0.88900 0.87630 4 0.85480 5 0.82193 0.86384 0.85161 0.83962 0.82785 0.81630 0.83856 0.82270 0.76290 0.80245 0.78353 0.76513 0.74726 0.72988 0.71299 0.80722 0.79209 0.77732 6 0.79031 0.76790 0.74622 0.72525 0.70496 0.68533 0.66634 7 0.75992 0.73483 0.71068 0.68744 0.66506 0.64351 0.62275 8 0.73069 0.70319 0.67684 0.65160 0.62741 0.60423 0.58201 9 0.70259 0.67290 0.64461 0.61763 0.59190 10 0.67556 0.64393 0.61391 11 0.64958 0.61620 0.58468 12 0.62460 0.58966 0.55684 13 0.60057 0.56427 0.53032 0.49856 14 0.57748 0.53997 0.50507 15 0.55526 0.51672 0.48102 0.56735 0.54393 0.58543 0.55839 0.53273 0.50835 0.55491 0.52679 0.50021 0.47509 0.52598 0.49697 0.46968 0.44401 0.46884 0.44102 0.41496 0.47257 0.44230 0.41410 0.38782 0.44793 0.41727 0.38883 0.36245 16 0.53391 0.49447 0.45811 0.42458 0.39365 0.36510 0.33873 17 0.51337 0.47318 0.43630 0.40245 18 0.49363 0.45280 0.41552 19 0.47464 0.43330 0.39573 0.36158 0.37136 0.34281 0.31657 0.38147 0.35034 0.32189 0.29586 0.33051 0.30224 0.27651 20 0.45639 0.41464 0.37689 0.34273 0.31180 0.28380 0.25842 21 0.43883 0.39679 0.35894 0.32486 0.29416 0.26648 0.24151 Instructions Present Value Tables Journal Additional Question Chart of Accounts Final Question Instructions Present Value Tables Journal a. Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles. Question not attempted. 1 Check My Work Shaded cells have feedba PAGE 10 JOURNAL Score: 0/112 ACCOUNTING EQUATION DATE DESCRIPTION POST REF DENT CREDIT ASSETS LIABILITIES EQUITY Points: 10/21 nal Additional Question b. Compute the amount of the bond interest expense for the first year. Annual interest paid Plus discount amortized $ Interest expense for first year $ Feedback Check My Work Points: Shade