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ow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker-assignments&itakeAssignmentSessionLocator-assignment-take;&inp; roblems eBook Show Me How Calculator Print Item AL Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Daan Corporation wholesales repair products to equipment manufacturers. On April 1, 2016, Daan Corporation issued $3,500,000 of 8-year, 10% bonds at a market (effective) interest rate of 8%, receiving cash of $3.907,830. Interest is payable semiannually on Apri and October 1. a. Jounalize the entry to record the issuance of bonds on April 1, 2016. For a compound transaction, if an amount box does not require an entry, leave it blank TAL b. Journalize the entry to record the first interest payment on October 1, 2016, and amortization of bond premium for six months, using the straight-line method. The bond premium amortization is combined with the semiannual interest payment. (Round to the nearest dollar) For a compound transaction, if an amount box does not require an entry, leave it blank c. Why was the company able issue the bonds for s3.g0o7,830 rather than for the face amount of $3,s0o c. Why wa , The market rate of interest is 830 rather than for the face amount of $3,500,000? the contract rate of interest Previcus Next Check My Work 2 more Check My, worn uses remarnino 2 more Check My Work uses remaining d1250 AMExplanation / Answer
Journal entries :
c) The market rate of interest is Lower the contract rate of interest.
Date accounts & explanation debit credit Apr 1 Cash a/c 3907830 Bonds payable a/c 3500000 Premium on bonds payable 407830 (To record issuance of bonds payable) Oct 1 Interest expenses a/c 149511 Amortization of premium on bonds payable 25489 Cash a/c (3500000*10%*6/12) 175000 (To record first interest payment)Related Questions
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