On December 31, 2018, when the market interest rate is 8% OBrie Realty issues S6
ID: 2584841 • Letter: O
Question
On December 31, 2018, when the market interest rate is 8% OBrie Realty issues S600,000 of 9 25% 1 ear bonds payable. The bonds pay interest sen iar nual, OBr Requirements 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar) 2. Using the amortization table prepared in Requirement 1. journalize issuance of the bonds and the first two interest payments Raty e eieds sor23m cash at is a ce Requirement 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar) Interest Carrying Cash Paid Expense Amortized Amount 2/31/2018 06/30/2019 12/31/2019 lize issuance of the bonds and the first two interest payments. (Record debits first, then credits. Select explanations on the last line of the journal Requirement 2. Using the amortization table prepared in Requirement 1, journal entry. Round your answers to the nearest whole dollar) Start by journalizing the issuance of the bonds on December 31, 2018 Debit Credit Date 2018 Dec. 31 Accounts and Explanation Choose from any list or enter any number in the input fields and then continue to the next questionExplanation / Answer
Requirement 1 Cash interest premium Carrying paid expense amortized value 12/31/2018 650,723 6/30/2019 27750 26029 1721 649002 12/31/2019 27,750 25960 1790 647212 cash paid = 600,000*9.25%*1/2 interest expense = CV *4% Requirement 2 Date Account and Explanation Debit Credit 2018 31-Dec Cash 650,723 premium on bonds payable 50,723 bonds payable 600,000 2019 30-Jun interest expense 26,029 premium on bonds 1,721 cash 27,750 31-Dec interest expense 25,960 premium on bonds 1,790 cash 27,750
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.