Question: Problem #2-Bonds issued at Par-Basic Concepts On April 1, Year 1, Darkland Company issued at par $62 million of 12%, 20-year bonds payable Interest is


Problem #2-Bonds issued at Par-Basic Concepts On April 1, Year 1, Darkland Company issued at par $62 million of 12%, 20-year bonds payable Interest is payable semiannually each April 1 and October 1 (a) What is the amount of cash paid to bondholders for interest during Year 1? (b) Give the adjusting entry necessary at December 31, Year 1 (if any), regarding this bond issue. (c) Interest expense on this bond issue reported in the Darkland Company's Year 1 income statement is: $ (d) With respect to this bond issue, Darkland Company's balance sheet at December 31, Year 1, includes bonds payable of $ and interest payable of (indicate $0 or "none" if the item is not reported. (e) Give the journal entry made by Darkland Company on April 1, Year 2, to record the semiannual payment of interest to bondholders
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