11 Verizon LTE 1:48 PM ezto.mheducation.com instructions help 1 1000 points On J

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11 Verizon LTE 1:48 PM ezto.mheducation.com instructions help 1 1000 points On January 1, 2011, Bartel Enterprises issues bonds that have a $3,650,000 par value, mature in 20 years, and pay 10% interest semiannually on June 30 and December 31. The bonds are sold at par. (Assume no reversing entries are used. Omit the "$" sign in your response.) Requirement 1: Requirement 2 the issuance of bonds on January 1, 2011 an the first interest payment on June 30, 2011 30 301 to the second interest payment on December 31, 2011 Requirement 3 the bonds are issued at 98 the bonds are issued at 105 eferences Bo& Resourees Difuty Medium nd bond

Explanation / Answer

Bond Value 3650000 Interest 10% 1 Semi annually interest amount 182500 (3650000 X 10% X 1/2) 2 Journal entries On the issue date Cash 3650000     Bonds payable 3650000 On 1st interest payments Bonds interest expenses 182500       Cash 182500 On 2nd interest payments Bonds interest expenses 182500       Cash 182500 3 Journal entries    If bonds are issued at 98 Cash 3577000 Discount on bonds payable 73000           Bonds payable 3650000 If the bonds are issued at 105 Cash 3832500      Bonds payable 3650000      Premeium on bonds payable 182500

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