5. Journal Entries Record the first interest payment on June 30, 2015. Record th

Question

5. Journal Entries

Record the first interest payment on June 30, 2015.

Record the second interest payment on December 31, 2015.

Hillside issues $3,000,000 of 6%, 15-year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of S3,671,990 Required: 1. Prepare the January 1, 2015, jounal entry to record the bonds' issuance view transaction list View general Journal Entry Worksheet Record the issue of bonds with a par value of $3,000,000 cash on anuary 1, 2015 at an issue price of $3,671,99o. Date General Journal Debit Credit Jan 01, 2015 Enter debits before credits entry 2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization (Round "Unamortized Premium" to whole dollar and use the rounded value for part 4 & 5.) premi Bond price ay 2(c) For each semiannual period, complete the table below to calculate the bond interest expense Bond interest e 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds life nterest e over life o Amount repaid payments of Par value at maturity Total repaid Less amount borrowed nterest e 4. Prepare the first two years of an amortization table using the straight-line method 01/01/2015 06/30/2015 12/31/2015 12/31/2016

Explanation / Answer

2(b)

3)

1 Date General Journal Debit Credit 1-Jan-15 Cash 3,671,990 Premium on bonds payable 671,990 Bonds payable 3,000,000

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