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e Edit View History com ESPN Yahool gold-soul. la women's swi... shophearts Cloud J Job Description Bing Vahoo doogle Wikpedia Facebook Chapter 14 Quiz 4 Quiz The Gorman Group issued $840.000 of 1% bonds on June 30,2018, for $912 072 The bonds were dated on June 30 and mature on June 30, 2038 (20 years) The market yield for bonds of similiar risk and maturity is 10% Interest is paid semiannualily on December 3n and June 30 Required: Complete the below table to record the company's journal entry 1. to 3. Prepare the jourmal entry to record their issuance by The Gorman Group on June 30, 2018, interest on December 31, 2018 and interest on June 30 2019 (at the effective rate) Complete this question by entering your answers in the tabs below. CakculationReq 1 to3 Complete the below table to record the company's joumal entry nearest whole dollar. Enter interest rate to 1 dedimal place.0.123 shouid be entered as 12.3)) etermediate calculations and fnal answers to the 31, 2018 Interest e Cash Jone 30, 2019 of premium on bonds

Explanation / Answer

Dec31 2018 Amount Int rate Total Interest expense 912072 5% 45603.6 Cash 840000 5.50% 46200 Amortization of Premium 596.4 June 30 2019 Amount Int. rate Total Interest expense 911475.6 5% 45573.78 Cash 840000 5.50% 46200 Amortization of Premium 626.22 Journal entries: Date Accounts title and explanation Debit $ Credit $ 30.06.18 Cash account Dr. 912072     Bonds payable Account 840000     Premium on Bonds payable 72072 31.12.18 Interest expense Account Dr. 45603.6 Premium on Bonds payable Dr. 596.4    Cash account 46200 30.06.19 Interest expense Account Dr. 45573.78 Premium on Bonds payable Dr. 626.22    Cash account 46200

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