Long-term Liabilities: Bonds Payable $600,000 Less: Discount on Bonds Payable 48,000 $552,000

Hamburgers issued

5%,

10-year bonds payable at

90

on December 31,

2016

At December 31,

2018

Johnny

reported the bonds payable as follows:

Johnny's

pays semiannual interest each June 30 and December 31. (Assume bonds payable are amortized using the straight-line amortization method.)Read the requirements.

Requirement 1. Answer the following questions about

Johnny's

bonds payable:a. What is the maturity value of the bonds?

$

b. What is the carrying amount of the bonds at December 31,

2018

$

c. What is the semiannual cash interest payment on the bonds?

$

d. How much interest expense should the company record each year?

$

Requirement 2. Record the June 30,

2018

semiannual interest payment and amortization of the discount. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Date			Accounts and Explanation	Debit	Credit
2018
Jun. 30