3. Required Provide the journal entry to record the issuance of the bonds (f no

Question

3. Required Provide the journal entry to record the issuance of the bonds (f no entrys account field. Round your final answers to nearest whole dollar amount Journal entry workshet 2. Provide the journal entry to recond the interest paryment on Manch 31, June 30 transactionlevent, select "No journal entry required in the first account field Round your final answers to nearest whole delar amount Check my work 3. What bonds payable amount will Claire report on this year's December 31 balance sheet? (Round your final answers to nearest whole dollar amount)

Explanation / Answer

Price of the bond = c × F × (1 (1 + r)-t)/r+F(1 + r)t C=Interest Rate F= Face Value r=Market Interest Rate Price of Bond= Present value of Interest payments+Present value of the bond Price of Bond 6250*(1-(1.06)^-)/.03)+250000/(1.03)^8 (6250*(1-.78941)/.03)+250000*.78941 241225 Face vale 250000 Discount 8775 Interest payment (250000*2.5%) 6250 Discount factor is taken upto 5 decimal. As the table is not provided so I have taken till 5 decimal A B C D E F G               $ Date Interest Payment @2.5% Interest expenses at 3%*G Amortization of Bond C-B cr, balance in the a/c Bond Discount a/c Credit balance in the Bond payable Carrying value of Bond F-E Credit cash Debit Interest Expense Bond Discount 1-Jan 8775 250000 241225 31-Mar 6250 7237 987 7788 250000 242212 30-Jun 6250 7266 1016 6771 250000 243229 30-Sep 6250 7297 1047 5725 250000 244275 31-Dec 6250 7328 1078 4646 250000 245354 31-Mar 6250 7361 1111 3536 250000 246464 30-Jun 6250 7394 1144 2392 250000 247608 30-Sep 6250 7428 1178 1214 250000 248786 31-Dec 6250 7464 1214 0 250000 250000 Date Accounts title Dr Cr 1-Jan Cash 241225 Discount on Bonds payable 8775 Bonds Payable 250000 31-Mar interest expenses 7237 Discount on Bonds payable 987 Cash 6250 30-Jun interest expenses 7266 Discount on Bonds payable 1016 Cash 6250 30-Sep interest expenses 7297 Discount on Bonds payable 1047 Cash 6250 31-Dec interest expenses 7328 Discount on Bonds payable 1078 Cash 6250 ans c Amt of Bonds Payable 245354 If any dubt please comment

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