1 Required information Use the following information for the Problems below. (Algo) [The following information applies to the questions displayed below.] Hillside issues $2,300,000 of 8%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. 5 points eBook Problem 10-1A (Algo) Straight-Line: Amortization of bond discount LO P2 Ask Print The bonds are issued at a price of $1,987,457 Required: 1. Prepare the January 1 journal entry to record the bonds issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight line discount amortization. 210 For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments References Complete this question by entering your answers in tabs below. Reg 1 Req 2A to 20 Reg 3 Reg 4 Reg 5 Prepare the January 1 journal entry to record the bonds' issuance. View transaction list Journal entry worksheet Record the issue of bonds with a par value of $2,300,000 on January 1, 2021 at an issue price of $1,987,457. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Record entry Clear entry View general journal Problem 10-3A (Algo) Straight-Line: Amortization of bond premium LOP3 2 Ellis Company issues 6.5%, five-year bonds dated January 1, 2021, with a $500,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $510,666. The annual market rate is 6% on the issue date. 3 points Required: 1. Calculate the total bond interest expense over the bonds' life. 2. Prepare a straight-line amortization table for the bonds' life. 3. Prepare the journal entries to record the first two interest payments. eBook Complete this question by entering your answers in the tabs below. Ask Required 1 Required 2 Required 3 Print Calculate the total bond interest expense over the bonds' life. References Total bond interest expense over life of bonds: Amount repaid: payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense Problem 10-7A (Algo) Applying the debt-to-equity ratio LO A2 3 The following information is available for both Pulaski Company and Scott Company at the current year-end. 2 points Total assets Total liabilities Total equity Pulaski Company $ 2,309,500 849,500 1, 460,000 Scott Company $ 1,178,500 543,500 635,000 eBook Required: 1. Compute the debt-to-equity ratio for both companies 2. Which company has the riskier financing structure? Ask Complete this question by entering your answers in the tabs below. Print Required 1 Required 2 Compute the debt-to-equity ratio for both companies. References Choose Numerator: Choose Denominator: Debt-to-Equity Ratio 1 Pulaski Company Scott Company / = 1 Required information Use the following information for the Problems below. (Algo) [The following information applies to the questions displayed below.] Hillside issues $2,300,000 of 8%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. 5 points eBook Problem 10-1A (Algo) Straight-Line: Amortization of bond discount LO P2 Ask Print The bonds are issued at a price of $1,987,457 Required: 1. Prepare the January 1 journal entry to record the bonds issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight line discount amortization. 210 For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments References Complete this question by entering your answers in tabs below. Reg 1 Req 2A to 20 Reg 3 Reg 4 Reg 5 Prepare the January 1 journal entry to record the bonds' issuance. View transaction list Journal entry worksheet Record the issue of bonds with a par value of $2,300,000 on January 1, 2021 at an issue price of $1,987,457. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Record entry Clear entry View general journal Problem 10-3A (Algo) Straight-Line: Amortization of bond premium LOP3 2 Ellis Company issues 6.5%, five-year bonds dated January 1, 2021, with a $500,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $510,666. The annual market rate is 6% on the issue date. 3 points Required: 1. Calculate the total bond interest expense over the bonds' life. 2. Prepare a straight-line amortization table for the bonds' life. 3. Prepare the journal entries to record the first two interest payments. eBook Complete this question by entering your answers in the tabs below. Ask Required 1 Required 2 Required 3 Print Calculate the total bond interest expense over the bonds' life. References Total bond interest expense over life of bonds: Amount repaid: payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense Problem 10-7A (Algo) Applying the debt-to-equity ratio LO A2 3 The following information is available for both Pulaski Company and Scott Company at the current year-end. 2 points Total assets Total liabilities Total equity Pulaski Company $ 2,309,500 849,500 1, 460,000 Scott Company $ 1,178,500 543,500 635,000 eBook Required: 1. Compute the debt-to-equity ratio for both companies 2. Which company has the riskier financing structure? Ask Complete this question by entering your answers in the tabs below. Print Required 1 Required 2 Compute the debt-to-equity ratio for both companies. References Choose Numerator: Choose Denominator: Debt-to-Equity Ratio 1 Pulaski Company Scott Company / =