On January 1, 2021, Universe of Fun issues $890,000, 9% bonds that mature in 20 years. The
Question:
On January 1, 2021, Universe of Fun issues $890,000, 9% bonds that mature in 20 years. The market interest rate for bonds of similar risk and maturity is 10%, and the bonds issue for $813,642. Interest is paid semiannually on June 30 and December 31.
Complete the first three rows of an amortization schedule. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)
Date | Cash Paid | Interest Expense | Change in Carrying Value | Carrying Value |
1/1/2021 | ||||
6/30/2021 | ||||
12/31/2021 |
Record the issuance of the bonds on January 1, the interest payments on June 30, and December 31, 2021. (If no journal entry is required for a particular transaction, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar amount.
1) Record the bond Isssue
2)Record the First Semiannual interest Payment
3)Record the second semiannual interest payment
Financial Accounting
ISBN: 978-1259914898
5th edition
Authors: David Spiceland, Wayne M. Thomas, Don Herrmann