thanks ! value: 90.00 points Legacy issues $570,000 of 8.5%, four-year bonds dat

Question

thanks !

value: 90.00 points Legacy issues $570,000 of 8.5%, four-year bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. They are is sued at $508,050 and their market rate is 12% at the issue date. 1. Prepare the January 1, 2013, journal entry to record the bonds' issuance. view transaction list view general journal Journal Entry Worksheet Record the issue of bonds with a par value of $570,000 cash on January 1, 2013 at an issue price of $508,050 Date General Journal Debit Credit Jan. 1, 2013 *Enter debits before credits done clear entry record entry

Explanation / Answer

jan1 2013 cash debit 508050 discount on bonds debit 61950 credit bond payable 570000 cash interest paid bond interest expense discount amortized unamortized discount carrying value 1-Jan 61950 570000 508050 30-Jun 24225 30483 6258 55692 570000 514308 dec 31 2013 24225 30858.48 6633.48 49058.52 570000 520941.5 june 30 1014 24225 31256.49 7031.4888 42027.03 570000 527973 dec 31 2014 24225 31678.38 7453.378128 34573.65 570000 535426.3 june 30 2016 24225 32125.58 7900.580816 26673.07 570000 543326.9 december 31 2015 24225 32599.62 8374.615665 18298.46 570000 551701.5 june 30 2016 24225 33102.09 8877.092604 9421.364 570000 560578.6 december 31 2016 24225 33634.72 9409.718161 11.64583 570000 569988.4 amount of interest expenses to be recognized 255738.4 june 30 2013 interest expense debit 30483 to cash 24225 credit discount on bonds 6258 december 31 2013 interest expense debit 33708.48 to cash 27075 credit discount on bonds 6633.48

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