his Test:100 pts possible On December 31 201& when the markat interest rate is 4

Question

his Test:100 pts possible On December 31 201& when the markat interest rate is 4% Bryant Realty issues S400 000 of 5 25% 10 rear bonds payable The bonds pay interest sem an ssuance ally Bryant Realy rece ea saan ash at Prepare an amortization table using the eflecive interest amortization method for the first two semiannual interest periods (Round to the nearest dollr) 2. Using ??? amotation table prepared in Regaement 1. journa te asunceof the bonds and he first to merest payments Requirement 1. Prepare an amortization table using the effectlive interest amorization method for the frst two semiannual Inderest periods (Round to the nearest dollar nterest Carying Cash Paid Expense Amortined Amount 231/2018 06/30201 2/312019 Requirement 2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments (Record debils est then credis Select explanations on the last ine of the pumal enry Round your rs to the nearest whole dollar) Start by joumalicing the isuance of the bonds on December 31, 208 Date ccounts and t Debit Choose trom any lst or enter any number in the input tields and then conue to the next question

Explanation / Answer

Answer 1. Bond Premium Amortization Schedule Date Cash Interest Paid - $400,000 X 5.25% X 6/12 Period Interest Expense - Preceeding Bond Carrying Value X 4% X 6/12 Premium Amortization Unamortized Premium Bonds Carrying Amount A B C = A-B D = D - C E = $400,000 + D 31-Dec-18                                    -                                      -                                      -                        40,886                  440,886 30-Jul-19                           10,500                             8,818                             1,682                      39,204                  439,204 31-Dec-19                           10,500                             8,784                             1,716                      37,488                  437,488 Answer 2. Journal Entry Date Particulars Dr. Amt. Cr. Amt. Year 1 31-Dec-18 Cash          440,886 Bonds Payable          400,000 Premium on issue of Bond            40,886 (Record the issue of Bond) 30-Jul-19 Interest Expense              8,818 Premium on issue of Bond              1,682 Cash            10,500 (record the interest paid) 31-Dec-19 Interest Expense              8,784 Premium on issue of Bond              1,716 Cash            10,500 (record the interest paid)

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.