I need help with the last problem On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $3,700,000 of 7 year, 8 bonds at a market (effective) interest rate of 10 , receiving cash of $3,333,750 Interest on the bonds is payable semiannually on December 31 and June 30 The fiscal year of the company is the calendar year Required Question Content Area 1 Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1 For a compound transaction, if an amount box does not require an entry, leave it blank blank Accounts PayableBonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableCash Cash Cash Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableDiscount on Bonds Payable Discount on Bonds Payable Discount on Bonds Payable Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableBonds Payable Bonds Payable Bonds Payable Feedback Area Feedback Question Content Area 2 Journalize the entries to record the following For a compound transaction, if an amount box does not require an entry, leave it blank Round your answer to the nearest dollar a The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight line method blank Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableInterest Expense Interest Expense Interest Expense Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableDiscount on Bonds Payable Discount on Bonds Payable Discount on Bonds Payable Accounts PayableBonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableCash Cash Cash Feedback Area Feedback Question Content Area b The interest payment on June 30, Year 2, and the amortization of the bond discount, using the straight line method blank Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableInterest Expense Interest Expense Interest Expense Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableDiscount on Bonds Payable Discount on Bonds Payable Discount on Bonds Payable Accounts PayableBonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableCash Cash Cash Feedback Area Feedback Question Content Area 3 Determine the total interest expense for Year 1 Round to the nearest dollar $fill in the blank aa9c9001dfad002 1 4 Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest YesNoYes 5 Compute the price of $3,333,750 received for the bonds by using Table 1, Table 2, Table 3 and Table 4 (Round to the nearest dollar ) Your total may vary slightly from the price given due to rounding differences Present value of the face amount $fill in the blank aa9c9001dfad002 3 Present value of the semiannual interest payments fill in the blank aa9c9001dfad002 4 Price received for the bonds $fill in the blank aa9c9001dfad002 5 Feedback Area On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $3,700,000 of 7 year, 8 bonds at a market (effective) interest rate of 10 , receiving cash of $3,333,750 Interest on the bonds is payable semiannually on December 31 and June 30 The fiscal year of the company is the calendar year Required Question Content Area 1 Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1 For a compound transaction, if an amount box does not require an entry, leave it blank blank Accounts PayableBonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableCash Cash Cash Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableDiscount on Bonds Payable Discount on Bonds Payable Discount on Bonds Payable Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableBonds Payable Bonds Payable Bonds Payable Feedback Area Feedback Question Content Area 2 Journalize the entries to record the following For a compound transaction, if an amount box does not require an entry, leave it blank Round your answer to the nearest dollar a The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight line method blank Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableInterest Expense Interest Expense Interest Expense Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableDiscount on Bonds Payable Discount on Bonds Payable Discount on Bonds Payable Accounts PayableBonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableCash Cash Cash Feedback Area Feedback Question Content Area b The interest payment on June 30, Year 2, and the amortization of the bond discount, using the straight line method blank Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableInterest Expense Interest Expense Interest Expense Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableDiscount on Bonds Payable Discount on Bonds Payable Discount on Bonds Payable Accounts PayableBonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableCash Cash Cash Feedback Area Feedback Question Content Area 3 Determine the total interest expense for Year 1 Round to the nearest dollar $fill in the blank aa9c9001dfad002 1 4 Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest YesNoYes 5 Compute the price of $3,333,750 received for the bonds by using Table 1, Table 2, Table 3 and Table 4 (Round to the nearest dollar ) Your total may vary slightly from the price given due to rounding differences Present value of the face amount $fill in the blank aa9c9001dfad002 3 Present value of the semiannual interest payments fill in the blank aa9c9001dfad002 4 Price received for the bonds $fill in the blank aa9c9001dfad002 5 Feedback Area

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Question: I need help with the last problem On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $3,700,000 of 7-year, 8% bonds

I need help with the last problem

On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $3,700,000 of 7-year, 8% bonds at a market (effective) interest rate of 10%, receiving cash of $3,333,750. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

Required:

Question Content Area

1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1. For a compound transaction, if an amount box does not require an entry, leave it blank.

blank	Accounts PayableBonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableCash	Cash	Cash
	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableDiscount on Bonds Payable	Discount on Bonds Payable	Discount on Bonds Payable
	Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableBonds Payable	Bonds Payable	Bonds Payable

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Question Content Area

2. Journalize the entries to record the following: For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answer to the nearest dollar.

a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method.

blank	Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableInterest Expense	Interest Expense	Interest Expense
	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableDiscount on Bonds Payable	Discount on Bonds Payable	Discount on Bonds Payable
	Accounts PayableBonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableCash	Cash	Cash

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Question Content Area

b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the straight-line method.

blank	Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableInterest Expense	Interest Expense	Interest Expense
	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableDiscount on Bonds Payable	Discount on Bonds Payable	Discount on Bonds Payable
	Accounts PayableBonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableCash	Cash	Cash

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Question Content Area

3. Determine the total interest expense for Year 1. Round to the nearest dollar. $fill in the blank aa9c9001dfad002_1

4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest?

YesNoYes

5. Compute the price of $3,333,750 received for the bonds by using Table 1, Table 2, Table 3 and Table 4. (Round to the nearest dollar.) Your total may vary slightly from the price given due to rounding differences.

Present value of the face amount	$fill in the blank aa9c9001dfad002_3
Present value of the semiannual interest payments	fill in the blank aa9c9001dfad002_4
Price received for the bonds	$fill in the blank aa9c9001dfad002_5

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Required:

Question Content Area

1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1. For a compound transaction, if an amount box does not require an entry, leave it blank.

blank	Accounts PayableBonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableCash	Cash	Cash
	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableDiscount on Bonds Payable	Discount on Bonds Payable	Discount on Bonds Payable
	Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableBonds Payable	Bonds Payable	Bonds Payable

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Question Content Area

2. Journalize the entries to record the following: For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answer to the nearest dollar.

a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method.

blank	Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableInterest Expense	Interest Expense	Interest Expense
	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableDiscount on Bonds Payable	Discount on Bonds Payable	Discount on Bonds Payable
	Accounts PayableBonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableCash	Cash	Cash

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Question Content Area

b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the straight-line method.

blank	Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableInterest Expense	Interest Expense	Interest Expense
	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableDiscount on Bonds Payable	Discount on Bonds Payable	Discount on Bonds Payable
	Accounts PayableBonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableCash	Cash	Cash

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Question Content Area

3. Determine the total interest expense for Year 1. Round to the nearest dollar. $fill in the blank aa9c9001dfad002_1

4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest?

YesNoYes

Present value of the face amount	$fill in the blank aa9c9001dfad002_3
Present value of the semiannual interest payments	fill in the blank aa9c9001dfad002_4
Price received for the bonds	$fill in the blank aa9c9001dfad002_5

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