Legacy issues $720,000 of 6.5%, four-year bonds dated January 1, 2021, that pay interest semiannually on...
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Legacy issues $720,000 of 6.5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $683,649 when the market rate is 8%. Required: 2. Determine the total bond interest expense to be recognized over the bonds' life. - AMOUNT OF PAYMENT INCORRECT 3. Prepare a straight-line amortization table for the bonds' first two years. Note: Round your intermediate and final answers to the nearest whole dollar. 4. Prepare the journal entries to record the first two interest payments. - GENERAL JOURNAL INCORRECT 1. Prepare the January 1 journal entry to record the bonds' Issuance. Answer is complete and correct. General Journal Debit Credit 683,649 36.351 720,000 No Date 1 January 01 Cash Discount on bonds payable Bonds payable 2. Determine the total bond Interest expense to be recognized over the bonds' life. Answer is complete but not entirely correct. Total bond interest expense over life of bonds: Amount repaid: payments of Total repaid Par value at maturity Less amount borrowed Total bond interest expense 3. Prepare a straight-line amortization table for the bonds' first two years. Note: Round your Intermediate and final answers to the nearest whole dollar. Semiannual Period-End Unamortized Discount Carrying Value 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 28,800 $ 230,400 720.000 950,400 683,649 266,751 4. Prepare the journal entries to record the first two Interest payments. Answer is not complete. No 1 Date June 30 General Journal Debit Credit Accounts payable 111,111 Cash 111,111 2 December 31 Accounts receivable Cash 111,111 111.111 Legacy issues $720,000 of 6.5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $683,649 when the market rate is 8%. Required: 2. Determine the total bond interest expense to be recognized over the bonds' life. - AMOUNT OF PAYMENT INCORRECT 3. Prepare a straight-line amortization table for the bonds' first two years. Note: Round your intermediate and final answers to the nearest whole dollar. 4. Prepare the journal entries to record the first two interest payments. - GENERAL JOURNAL INCORRECT 1. Prepare the January 1 journal entry to record the bonds' Issuance. Answer is complete and correct. General Journal Debit Credit 683,649 36.351 720,000 No Date 1 January 01 Cash Discount on bonds payable Bonds payable 2. Determine the total bond Interest expense to be recognized over the bonds' life. Answer is complete but not entirely correct. Total bond interest expense over life of bonds: Amount repaid: payments of Total repaid Par value at maturity Less amount borrowed Total bond interest expense 3. Prepare a straight-line amortization table for the bonds' first two years. Note: Round your Intermediate and final answers to the nearest whole dollar. Semiannual Period-End Unamortized Discount Carrying Value 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 28,800 $ 230,400 720.000 950,400 683,649 266,751 4. Prepare the journal entries to record the first two Interest payments. Answer is not complete. No 1 Date June 30 General Journal Debit Credit Accounts payable 111,111 Cash 111,111 2 December 31 Accounts receivable Cash 111,111 111.111
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Related Book For
Calculus And Its Applications
ISBN: 9780134437774
14th Edition
Authors: Larry Goldstein, David Lay, David Schneider, Nakhle Asmar
Posted Date:
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