ASAP... I need help in this exercise plz.The book is financial and managerial ac

Question

ASAP... I need help in this exercise plz.The book is financial and managerial accounting wild, 6e
Chapter 10 problem 10-2A

Hillside issues $1,100,000 of 9%, 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 $950,524. Required 1. Prepare the January 1, 2015, journal entry to record the bonds' issuance. View transaction list Journal entry worksheet Record the issue of bonds with a par value of $1,100,000 cash on January 1, 2015 at an issue price of $950,524. Note: Enter debits before credits. Date General Journal Jan 01, 2015 Record entry Clear entry View general journal

Explanation / Answer

Requirement 1 Date/S.N. Account Title & Explanation Debit Credit Amount in Amount in Jan-01 Cash 950524 Discount on issuance of bonds 149476 9% Bonds 1100000 To record the issuance of bonds Requirement 2A to 2C Par Maturity Value Annual Rate Year Semiannual cash Interest Payment 1100000 9% 1/2 49500 Par Maturity Value Bonds Price Discount on Bonds payable Semiannual Periods Straightline discount amortization 1100000 950524 149476 30 4982.53333 Semiannual Cash Payment Discount amortization Bond Interest expense 49500 4982.53333 54482.53333 Requirement 3 Total Bond Interest expense Amount repaid Payment of Interest 1485000 Par Value at Maturity 1100000 Total Repaid 2585000 Less : Amount borrowed 950524 Total Bond Interest expense 1634476 Requirement 4 Amortization Table using straightline method for first two Years Semi-annual period end Unamortized discount Carrying Value 01/01/2015 149476 950524 06/30/2015 144493.467 955506.5333 12/31/2015 139510.933 960489.0667 06/30/2016 134528.4 965471.6 12/31/2016 129545.867 970454.1333 Requirement 5 Date/S.N. Account Title & Explanation Debit Credit Amount in Amount in 06/30/2017 Interest Expense 54482.5333 Discount on issuance of bonds 4982.53333 Cash 49500 To record semiannual Interest Expense 12/31/2017 Interest Expense 54482.5333 Discount on issuance of bonds 4982.53333 Cash 49500 To record semiannual Interest Expense If you find this solution helpful please do rate it. Thank you

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