Please show calculations FIN Kieso, Intermediate Accounting, 160 CALCULATORHESSA

Question

Please show calculations FIN Kieso, Intermediate Accounting, 160 CALCULATORHESSAGE HY INS Briel Exercise 14-6 On January 1, 2017, Sage Corporation issued S660 000 of 9% bonds, due in 8 years. The bonds were issued for S624,23, and pay interest each July 1 and January 1 Sage uses the effectiveinterest method Prepare the como amy's orral entries for (a) the lansary 1 Iss ance, (b) the Mr 1 interest payment, and (c) the December 31 a usting entry. Assume an e rective interest rate of 10%. Rondinern edite answer to 0 declmal places, e.g.38,548 If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts, Credit account titles are automatically Indented when am No. Date Account Tibles and Explanation (a) Jan. 1, 2017 Debit Credit ]l Show Work is REQUIRED for this question: geen shsen Wk

Explanation / Answer

Journal entry :

No Date Account Title and explanation debit credit A Jan 1,2017 Cash 624235 Discount on bonds payable 35765 Bonds payable 660000 (To record bonds issue) B July 1,2017 Interest expense (624235*10%*6/12) 31212 Discount on bonds payable 1512 Cash (660000*9%*6/12) 29700 (To record interest paid) c Dec 31,2017 Interest expense (624235+1512)*10%*6/12 31287   Discount on bonds payable 1587 Interest payable 29700 (To record adjusting entry)

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