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Requlred Information

$[$The following information applies to the questions displayed below.$]$

On January $1,2022,$ Drennen, Incorporated, issued $$6$ million face amount of $10-$year, $14\%$ stated rate bonds when market

interest rates were $12\%.$ The bonds pay semiannual interest each June $30$ and December $31$ and mature on December $31,$

Table $6-4.$ Table $6-5$

Note: Use approprlate foctor from the table provided.

Required:

a$.$ Calculate the proceeds $($issue price$)$ of Drennen Incorporated's bonds on January $1,2022,$ assuming that the bonds were sold to

provide a market rate of return to the investor.

Note: Enter your answers In whole dollars, not In millilons.?

Requlred Information

$[$The following information applies to the questions displayed below.$]$

On January $1,2022,$ Drennen, Incorporated, issued $$6$ million face amount of $10-$year, $14\%$ stated rate bonds when market

interest rates were $12\%.$ The bonds pay semiannual interest each June $30$ and December $31$ and mature on December $31.$

Table $6-4.$ Table $6-5$

Note: Use approprlate factor from the table provided.

b$-1.$ Assume instead that the proceeds were $$5,780,000.$ Use the horizontal model to record the payment of semiannual interest and

the related discount amortization on June $30,2022,$ assuming that the discount of $$220,000$ is amortized on a straight$-$line basis.

Indicate the financial statement effect.

Note: Enter your answers In whole dollars, not In millilons. Enter decreases with a minus sign to Indlcate a negatlve financial

statement effect.Requlred Information

$[$The following information applies to the questions displayed below.$]$

On January $1,2022,$ Drennen, Incorporated, issued $$6$ million face amount of $10-$year,$14\%$ stated rate bonds when market

interest rates were $12\%.$ The bonds pay semiannual interest each June $30$ and December $31$ and mature on December $31.$

Table $6-4.$ Table $6-5$

Note: Use approprlate foctor from the table provided.

b$-2.$ Assume instead that the proceeds were $$5,780,000.$ Record the journal entry to show the payment of semiannual interest and the

related discount amortization on June $30,2022,$ assuming that the discount of $$220,000$ is amortized on a straight$-$line basis.

Note: If no entry is requlred for a transactlon$/$event$,$ select $"$No journal entry requlred" In the first account fleld.

Journal entry worksheet

$1$

Record the semiannual cash payment and amortization of discount.

Note: Enter debits before credits.