v Homepage | LAMC * | Chapter 11 HW: Long-term liab x CengageNOWv2 | Online teach x " CengageNOWv2 | Online teach x | * Chat Thread * + X CA 2 v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=assignment-take&inprogress=false G H Chapter 11 HW: Long-term liabilities eBook Bond discount, entries for bonds payable transactions, interest method of amortizing bond discount On July 1, 20Y1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $46,000,000 of 20-year, 10% bonds at a market (effective) interest rate of 11%, receiving cash of $42,309,236. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 99 For all journal entries, if an amount box does not require an entry, leave it blank. 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds. 20Y1 July 1 Cash - V 42,309,236 V Discount on Bonds Payable 3,690,764 V Bonds Payable 46,000,000 Feedback Check My Work O Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond discount, using the interest method. Round to the nearest dollar. 20Y1 Dec. 31 Interest Expense 2,327,008 Discount on Bonds Payable 27,008 Cash 2,300,000 b. The interest payment on June 30, 20Y2, and the amortization of the bond discount, using the interest method. Round to the nearest dollar. 20Y2 June 30 Interest Expense 2,328,493 Discount on Bonds Payable 28,493 Cash 2,300,000 3. Determine the total interest expense for 20Y1. Round to the nearest dollar. 2,327,008. 4:38 PM Saturday Check My Work 0 more Check My Work uses remaining. Previous 10/5/2024 Assignment Score: 90.84% Save and Exit Submit Assignment for Grading