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5. Prepare journal entries for Record the first interest payment on June 30, 2015. Record the second interest payment on December 31, 2015. Hillside issues
5. Prepare journal entries for
Record the first interest payment on June 30, 2015.
Record the second interest payment on December 31, 2015.
Hillside issues $2.400.000 of 9%, 15-year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $2,073,868 Required 1. Prepare the January 1, 2015, journal entry to record the bonds' issuance view transaction list view general journal General Journal Debit 2,073,868 326,132 Date Credit Jan 01, 2015 Cash Discount on bonds payable Bonds payable 2,400,000 2(a) For each semiannual period, complete the table below to calculate the cash payment emiannua Par (maturity) value Annual Rate Year interest 2,400,000 9%, /12$ 108,000 2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization scount on emiannua tr aight-line discount Par (maturity) value Bonds price ayable amortization 2,400,000 2(c) For each semiannual period, complete the table below to calculate the bond interest expense annual cash iscoun amortization Bond interest expense 3. 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 expenseStep by Step Solution
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