Connect Secure htps: cation.com/flow/connect.htm Chapter 10 Homework Help Save&E

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Connect Secure htps: cation.com/flow/connect.htm Chapter 10 Homework Help Save&Exlt; Submt 4 Hiiside issues $1,400,000 of 5% 15year bonds dated January t 207, that pay ite est se ¡annualy on Ar e 30 and December 3t The bonds are issued at a price of $1209757 1 Prepare the January 1, 2017, yournal entry to record the bonds issuance 2(0) For each semiannual period, complete the table below to calculate the cash payment 2jb) For each semiannual period, complete the table below to calculate the straight-line discount amortization 2ic) For each semiannual period, complete the table below to calculate the bond interest expense 3. Complete the below table to calculate the total bond interest expense to be recognined over the bonds'ife 4. Prepare the first two years of an amortization table using the straight-ine method eterences. Prepare the journal entries to recond the first two interest payments Complete this question by entering your answers in the tabs below the January 5,2017,urnal entry to Journal entrv worksheet

Explanation / Answer

Req 1 Journal entry; Date Accounts title and explanations Debit $ Credit $ Jan1 2017 Cash Account Dr. 1209757 Discount on bonds payable Dr. 190243      Bonds payable 1,400,000 Req 2: Par value Annual rate Year Semi-Annual Cash Interest payment 1,400,000 5% 0.5 35000 Par value Bonds price Discount on Bonds payable Semi Annual Periods Stright line Discount Amortization 1,400,000 1209757 190243 30 6341.433 Semi Annual Discount Bond interest Ccash payment Amortization expense 35000 6341 41341 Req 3: Amount repaid: 30 payment of $ 35000 1,050,000 par value of maturity 1,400,000 Total repaid 2,450,000 Less: Issue price 1,209,757 Total Bonds interest expense 1,240,243 Req 4: Semi Annnual period Unamortized Discount carrying Amount 01.01.2017 190243 1209757 30.06.2017 183902 1216098 31.12.2017. 177561 1222439 30.06.2018 171220 1228780 31.12.2018 164879 1235121 Req 5: June30 2017 Bonds interest expense Dr. 41341        Cash Account 35000         Discount on Bonds payable 6341 Dec 31 2017 Bonds interest expense Dr. 41341        Cash Account 35000         Discount on Bonds payable 6341

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