10 Prob 9-13

Required information The following information applies to the questions displayed below Ike issues $200,000 of 9%, three-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31, They are issued at $205,239. Their market rate is 8% at the issue date. Requirec 1. Prepare the January 1, 2017, journal entry to record the bonds' issuance. Record the issue of bonds with a par value of $200,000 cash on January 1, 2017 at an issue price of $205,239 Note: Enter debits before credits. Date General Journal Debit Credit Jan 01, 2017 Record entry Clear entry View general journal 2. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life 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 3. Prepare an effective interest amortization table for the bonds' first two years. Semiannual Cash Interest Unamortized Carrying Value Bond InterestPremium Interest Period-End 01/01/2017 06/30/2017 12/31/2017 06/30/2018 12/31/2018 Carrving Value Paid Expense Amortization Premium Journal entry worksheet 2 Record the first interest payment on June 30, 2017. Note: Enter debits before credits. Date General Journal Debit Credit Jun 30, 2017 Record entry Clear entry View general journal Journal entry worksheet 2 Record the second interest payment on December 31, 2017. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2017 Record entry Clear entry View general journal