L My Drive i × D untitled doc × Solomon Nc × D ezto. mheducation.com/hm.tpx (38)

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L My Drive i × D untitled doc × Solomon Nc × D ezto. mheducation.com/hm.tpx (38) TWELVE M Cnapters 8 × G chegg Stud·e [The Followi × G The Follow x ! × x value. 1.00 points Required information Problem 9-4A Part 3 3. If the market interest rate is 7%, the bonds will issue at $630,862. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and Decamber 31, 2018. (lf no entry is required for a transactionlevent, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit January 01, Cash 630,862 2018 Premium on bonds payable Bonds payable 60,862 570,000 2June 30, 2018 Interest expense Premium on bonds payable Cash Required Information Problem 9-4A Record bond issue and related interest (LO9-6) December 1Interest expense 2018 Premium on bonds payable Cash The following information applies to the questions displayed belo. On January 1, 2018, Twister Enterprises, a manufacturer of a variety of transportable spin rides. issues $570,000 of 8% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year 12:33 PM Type here to search 11/11/2017

Explanation / Answer

Jan-1-18 Cash 630862      Premium on bonds payable 60862       Bonds payable 570000 Jun-30 Interest expense 22080 =630862*3.5% Premium on bonds payable 720        Cash 22800 =570000*8%/2 Dec-31 Interest expense 22055 =(630862-720)*3.5% Premium on bonds payable 745        Cash 22800 =570000*8%/2

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