E10-11 and E10-12

s planning to issue $100,000, five-year, 6 percent bonds. Interest is payable semi-annually each June 30 and December 31. All of the bonds will be sold on mature on June 30, 2022. the bonds will be sold on July 1, 2017; they L010-3 E10-11 Required: ssue (sale price on July 1, 2017, if the yield is (a) 6 percent, (b) 5 percent, and 7 percent. Show computations. Recording Bond Issue and First Interest Paument with Premium (Effective-inte Recording Bor Amortization) On January 1, 2018, Bochini Corporation sold a $10 million, 8.25 percent bond issue. The bonds we dated January 1, 2018, had a yield of 8 percent, pau interest each December 31, and mature 10 years from the date of issue. Required: 1. Prepare the journal entry to record the issuance of the bonds. 2. Prepare the journal entry to record the interest payment on December 31, 2018. Use effective- interest amortization. 3. Show how the bond interest expense and the bonds payable should be reported on the annual financial statements for 2018. L010-3 E10-12 Determining Financial Statement Balance with the Effective-Interest Amortization of a Determining Financial Statement a Bond Discount Eagle Corporation issued $10,000,000, 6.5 percent bonds dated April 1, 2018. The market rate of interest was 7 percent, with interest paid each March 31. The bonds mature in three years, on March 31, 2021. Eagle's fiscal year ends on December 31. Required: 1. What was the issue price of these bonds? 2 Compute the bond interest expense for fiscal year 2018. The company uses the effective inter method of amortization. on the statement of financial position at December 31, 2018. 3. Show how the bonds should be reported on the statement of financial position pense will be recorded on March 31, 2019? Is this amount different from 4. What amount of interest expense will be recorded on March 31, 20 the amount of cash that is paid? If so, why