er 10 Homework >x ezto.mheducation.com/hmtpx?-:0644004623048048-1513214259.. Q M
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er 10 Homework >x ezto.mheducation.com/hmtpx?-:0644004623048048-1513214259.. Q My eBay Summary Hair and Nails Honda Parts OEM 30 20.00 points Hitside issues S2. 700,000 or 7%, 15-year bonds dated January 1 2016, that pay interest sen iannualy on June 30 and December 31. The bonds are issued at a prioe of $2.333,101. Required: 1. Prepare the January 1, 2016. journal entry to record the bands' issuance View transaction ist Journal entry worksheet Record the issue of bonds with a par value of $2,700,000 cash on January 1, 2016 at an issue price of $2,333,101. Niote: Enter debits helore crests Date General Journal Debit Credit Jan 01, 2016 Record enbry Cler entry Vlew goneral jounal Type here to searchExplanation / Answer
Journal entry Date General Journal Debit Credit 1/1/2016 Cash 2,333,101 discount on bonds 366,899 bonds payable 2,700,000 2-a) par maturity value Annual rate / year semi annual cash payment 2,700,000 * 7% 6./12 94500 semi annual Straight line 2-b) par value bonds price discount periods disc amortization 2,700,000 - 2,333,101 = 366,899 / 30 = 12230 2-c) Semi annual cash discount bond interest expense payment amortization 94,500 + 12230 = 106,730 3) total bond interest expense over life of bonds amount repaid 30 payments of 94,500 2835000 par value ant maturity 2,700,000 total repaid 5535000 less amount borrowed -2,333,101 total bond interest expense. 3201899 4) unamort Carrying period discount value 1/1/2016 366,899 2,333,101 6/30/2016 354,669 2,345,331 12/31/2016 342,439 2,357,561 6/30/2017 330,209 2,369,791 12/31/2017 317,979 2,382,021 5) Date General Journal Debit Credit 6/30/2016 interest expense 106,730 discount on bonds amortize 12,230 cash 94,500 31/12/2016 interest expense 106730 discount on bonds amortize 12,230 cash 94,500
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