A B 1 Long-tem Liabilities 2 Determine bonds payable amounts with a discount; amortize bonds using the straight-line method On July 1, 2018, Starlight Drive-Ins Ltd. borrowed money by issuing bonds payable with characteristics given below. The bonds pay 4 interest each January 1 and July 1. Bonds payable issued Maturity (years) Stated interest rate ssue price 5,000,000 10 95.50 10 11 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be 12 marked wrong. 13 14 Requirements 15 1 How much cash did Starlight receive when it issued the bonds payable? Journalize this transaction. 16 17 18 19 2 How much must Starlight pay back at maturity? When is the maturity date? a. Check your spelling carefully and do not abbreviate b. Record debits first, then credits. Exclude explanations from journal entries. C. Use cell references from prior calculations, if applicable a.Ente al aounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted b. Enter any dates using the following format: MM/DD/YY. For example, 1/1/17 . Use cell references from prior calculations, if applicable 21 23 3 How much cash interest will Starlight pay each six months? a.Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted b. Use cell references from prior calculations, if applicable. for the accrual of interest and amortization of discount on December 31, 2018, and the payment of interest on January 1, 2019 25 4 How much interest expense will Starlight report each slx months? Use the straight-line amortization method. Journalize the entries 26 Check your spelling carefully and do not abbrevlate Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted 27 a. b. 28 29 Record debits first, then credits. Exclude explanations from journal entries. d. Use cell references from prior calculations, if applicable 31 32 33 Saving & Submitting Solution 34 1Save file to desktop. 35 36 37 2 Upload and submit your file to be graded. 38 39 Create folder on desktop, and label COMPLETED EXCEL PROJECTS Save your solution in the folder you just created; add -solution-date to end of file name a. b. a. Navigate back to the activity window - screen where you downloaded the initial spreadsheet b. Click Choose button under step 3; locate the ile you just saved and click Open c. Click Upload button under step 3 d. Click Submit button under step 4 41 42 43 44 Viewing Results 45 1Click on Results tab in MyAccountingLalb 46 2 Click on the Assignment you were working on 47 3 Click on Project link; this will bring up your Score Card 48 4 Within Score Card window, click on Live Comments Report (lower right) to download spreadsheet with feedback 49 INSTRUCTIONS ENTERANSWERS + 1. How much cash did Starlight receive when it issued the bonds payable? Journalize this transaction (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong 1 2 Use cell references from prior calculations, if applicable.) 4 Face amount of bonds 5 Issue price 6 Proceeds 7 Discount on bonds payable Date Accounts Debit Credit 10 01/07/18 12 13 14 2. How much must Starlight pay back at maturity? When is the maturity date? (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong 15 Use cell references from prior calculations, if applicable.) 16 17 Amount to pay back at maturity 18 Maturity date 19 20 3. How much cash interest will Starlight pay each six months? (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong 21 Use cell references from prior calculations, if applicable.) 23 Interest payment 24 25 4. How much interest expense will Starlight report each six months? Use the straight-line amortization method. Journalize the entries for the accrual (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong 26 Use cell references from prior calculations, if applicable.) 27 28 Number of semiannual interest payment periods 29 Straight-line amortization per interest period 30 Interest paid each interest period 31 Total interest expense per each interest period 32 Date Accounts Debit Credit 12/31/18 34 35 36 37 38 39 40 01/01/19 42