Loschiavo Ltd. was authorized to issue $1,100,000 of 5-year, 8% bonds payable on 1 January 20X2. The bonds are due on 31 December,20X6. Interest payments dates were 30 June and 31 December. The bond was sold to yield 10%.

Required:
1. Provide the journal entry for issuance of the bond. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)

2. Provide the journal entries for interest expense for 20X2 assuming the effective interest method of amortization. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)

3. Provide the journal entries for interest expense for 20X2 assuming the straight-line method of amortization. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)

Answer rating: 100% (QA)

Solution 1 Computation of bond price Table values are based on n 10 i 500 Cash flow Table Value Amou... View the full answer