html eispering ies Ap ·SHREYA C?ANO ?_ @ Shoes for wormen i m Reliable-Go-Tar. O
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html eispering ies Ap ·SHREYA C?ANO ?_ @ Shoes for wormen i m Reliable-Go-Tar. O- ? Create Your Free w. @ my math lab ? Connect account 30pts) Help Exercise 10-1 Recording bond issuance and interest LO P1 On January 1, 2017. Boston Enterprises issues bonds that have a S3400000 par value, mature i, 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par 1. How much interest will Boston pay (In cash) to the bondholders every stx months? 2. Prepare journal entries to record (a) the issuance of bonds on January 1, 2017; (b) the first interest payment on June 30, 2017, and the second linterest payment on December 31, 2017 3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 98 and (b) 102. (c) Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 How much interest will Boston pay (in cash) to the bondholders every six months? G Search or type URLExplanation / Answer
Req 1: Interest on every Semi annual rest: Maturity value * Semi Annual rate = Semi Annual cash interest 3,400,000 4.50% 153,000 Req 2: Journal entries: Date Accounts title and explanations Debit $ Credit $ Jan 12017 Cash Account Dr. 3,400,000 Bonds payable 3,400,000 June 30 2017 Interest expense Dr. 153,000 Cash Account 153,000 Dec31 2017 Interest expense Dr. 153,000 Cash Account 153,000 Req 3: Journal entries: Date Accounts title and explanations Debit $ Credit $ Case-a: Issue at 98 Jan1 2017 Cash Account Dr. (3400,000*98%) 3332000 Discount on Bonds payable Dr. 68,000 Bonds payable 3,400,000 Case-b Issue at 102 Jan1 2017 Cash Account Dr. (3400,000*102%) 3,468,000 Bonds payable 3,400,000 Premium on Bonds payable 68,000
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