Hello, I need help with the following question(s): Exam 4 Mail-jyarbrough001501

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Hello, I need help with the following question(s):

Exam 4 Mail-jyarbrough001501 XYG chegg Study | GuidedSc vMInbox (1)-J.yarb 1 021 @9' ? × ? ? ? ??Secure l https://newconnect.mheducation.com/flow/connect.html Exam 4 Saved Help Save & Exit Submit 9 MC Qu. 109 A company issued... A company issued 9%, 15-year bonds with a par value of $490,000 that pay interest semiannually. The market rate on the date of issuance was 9%. The journal entry to record each semiannual interest payment is: pcinis 01:54 23 Multiple Choice Debit Bond Interest Expense $22,050; credit Cash $22050 Debit Bond Interest Expense $44100: credit Cash $44.100. Deblt Bond Interest Payable 332 667 credit Cash $32.667 Mc Graw

Explanation / Answer

9) The Journal Entry: Debit Bond Interest Expense $ 22,050, credit cash $ 22,050. Working: Semi annual interest = Par Value x Semi annual coupon interest = $       4,90,000 x 9% x 6/12 = $           22,050 10) $ 3,200 gain Working: Amount payable at the time of sale $       1,02,700 Amount paid for bonds payable $           99,500 Gain on retirement $             3,200

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