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3 Question Help Benny's Hamburgers issued 9%, 10-year bonds payable at 85 on December 31, 2018. At December 31, 2020, Benny reported the bonds payable
3 Question Help Benny's Hamburgers issued 9%, 10-year bonds payable at 85 on December 31, 2018. At December 31, 2020, Benny reported the bonds payable as follows: (Click the icon to view the bonds payable.) Benny's pays semiannual interest each June 30 and December 31. (Assume bonds payable are amortized using the straight-line amortization method.) Read the requirements. Requirement 1. Answer the following questions about Benny's bonds payable: a. What is the maturity value of the bonds? $ 600000 b. What is the carrying amount of the bonds at December 31, 2020? $ 528000 c. What is the semiannual cash interest payment on the bonds? $ 324000 d. How much interest expense should the company record each year? $ 61200 Requirement 2. Record the June 30, 2020, semiannual interest payment and amortization of discount. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit 2020 Jun. 30 Interest Expense 27000 Discount on Bonds Payable Cash the bonds? $ 324000 20 record er nal intere Data Table the explanation on the Long-term Liabilities: Bonds Payable $ able $12.000) 5 600,000 (72,000) $ Less: Discount on Bonds Payable 528,000 Print Done
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