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123 fic A B B D E F GH | K L M N. Question 3 On January 1, 2019, Schooner Corp. issued bonds having
123 fic A B B D E F GH | K L M N. Question 3 On January 1, 2019, Schooner Corp. issued bonds having the following characteristics: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Face value: $400,000.00 Issue price: $364,667.92 Stated rate: 8% per year Market rate: 9% per year Maturity: 18 years The bonds make semiannual interest payments on June 30 and December 31. Assume that the company uses the straight-line interest method. Part (a) Prepare the journal entry for interest on June 30, 2019. (When computing amounts, use Excel formulas and cell references only. Do not manually input values.) Account Title Debit Credit Interest expense Discount on bonds payable Bonds payable 16,000 18 19 20 21 23 25 27 28 29 30 32 33 35 36 37 38 39 40 41 42 Part (b) What is the balance of the discount account as of January 1, 2021 (after the fourth interest payment)? (Use Excel formulas and cell references only. Do not manually input values.) When finished, click here to return to the first tab. Then save your file and upload to Canvas
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