FULL SCREEN PRINTER VERSSON BACK WileyPLUS Problem 10-5 (Part Level Submission)

Question

FULL SCREEN PRINTER VERSSON BACK WileyPLUS Problem 10-5 (Part Level Submission) On January 1, 2018, Irik annual interest, each January 1. Corporation issued $1,600,000 face value, 8% 10-year bonds at $1,497,317 This price resulted in an effect t inte est te of 9% on the bonds. The bonds pay (a) Your answer is correct. Prepare the journal entry to record the issue of the bonds on January 1, 2018. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit an. 1, 2018 Cash Bonds Payabie 14973 SHOW LIST OF ACCOUNTS SHOW ANSWER Attempts: 3 of 3 used Prepare an amortization table through December 31, 2021 (three interest periods) for this bond i dollar, e.g. 5,275.) (b) issue. December 31 is the company's year-end. (Round answers to the nearest Version 4.24.3.3 All Rights Reserved. A Division of Jahn Wile& s

Explanation / Answer

Amortization Schedule interest interest discount unamort bond periods paid expense amortized discount CV 8% 9% issue date 2018 102,683 1,497,317 1-Jan 2019 128000 134,759 6,759 95,924 1,504,076 1-Jan 2020 128000 135,367 7,367 88,557 1,511,443 interest paid = 1,600,000*8% 128000 interest expense = 1497317*9%= 134758.5 discount amortized 134759-128000= 6759 unamortized = 102,683-6759= 95,924 bond CV = 1497317+6759= 1,504,076 year 2 interest expense 1504076*9%= 135366.8 discount amortized = 135,367-128000= 7,367 unamortized 95924-7367= 88,557 CV 1504076+7367= 1,511,443

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