Hillside issues $2.700,000 of 7%, 15-year bonds dated January 1, 2015, that pay

Question

Hillside issues $2.700,000 of 7%, 15-year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $2,333,101. Required: 1. Prepare the January 1,2015, joumal entry to record the bonds' issuance View transaction list Journal entry worksheet Record the issue of bonds with a par value of $2,700,000 cash on January 1, 2015 at an issue price of $2,333,101. Note: Enter debits before credits. Date Jan 01, 2015 General Journal DebitCredit Record entry Clear entry View general journal 2(a)For each semiannual period, complete the table below to calculate the cash payment Par (maturity) value Annual Rate Year interest payment Ask me anything

Explanation / Answer

Required information is as calculated below:

1.

2a

2b

2c

3.

4.

Amortization Table

5.

Year Particulars L.F Debit ($) Credit ($) 2015 Jan-01 Cash   2,333,101 Discount on Bonds payable 366,899 Bond Payable 2,700,000 (For 15 year bonds issued at discount)

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