E10-23 (Algo) (Chapter Supplement) Recording and Reporting a Bond Issued at a Premium (Straight-Line Amortization without a Premium Account) LO 10-5

On January 1 of this year, Victor Corporation sold bonds with a face value of $1,520,000 and a coupon rate of 10 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. Victor uses the straight-line amortization method and does not use a premium account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answers to whole dollars.)

Required:

1.& 2. Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year.

3. What bonds payable amount will Victor report on its June 30 balance sheet?

Check my work mode: This shows what is correct or incorrect for the work you have completed 3 E10-23 (Algol (Chapter Supplement) Recording and Reporting o Bond Issued at a Premium (Straight Line Amortization without a Premium Account) LO 10-5 10 DOTES On January 1 of this year, Victor Corporation sold bonds with a face value of $1520.000 and a coupce rate of 10 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. Victor uses the straight-line amortizacion method and does not use a premium account Assume an annual market rate of interest of 85 percent. 1. V.1 EVA St, and PVA of 59 (Use the appropriate factor(s) from the tables provided. Round your final answers to whole dollars.) Required: 1.& 2. Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year 3. What bonds payable amount will Victor report on June 30 balance sheet? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Hot and 2 What bonds payable amount will Victor report on its June 30 balance sheet? VICTOR CORPORATION Balance Sheetal) Alduna Logo Bonda payable 1.520.000 Promo bonds payable 66.472 s 1 536 472