answer to 4b? Ch 10 Hw C O Not secure ezto.mheducation.com/hm.tpx?-0.12829196459

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answer to 4b?

Ch 10 Hw C O Not secure ezto.mheducation.com/hm.tpx?-0.1282919645999745 15111381611 10 HW Question 6 (of 7 value 1.50 points Southwest Corporation issued bonds with the following details: Face value: $510,000 Interest 10 percent per year payable each December 31 Terms Bonds dated January 1, 2015, due five years from that date The annual accounting period ends December 31. The bonds were issued at 103 on January 1, 2015 when the market interest rate was 9 percent. Assume the company uses straight-line amortization and adjusts for any rounding errors when recording interest expense in the final year. Required Compute the cash received from the bond issuance in dollar TIP The issue price typically is quoted at a percentage of face value ond Price $ 525,300 2. & 3. Prepare the journal entry to record the issuance of the bonds and the payment of interest on December 31, 2015 and 2016. (lf no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Explanation / Answer

2015 2016 Bond Payable 510000 510000 Add Premium on Bond Payable 12240 9180 Carrying Value 522240 519180

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