A13-6 Interest Expense (LO 13-4) Mathieson Co. Issues a $13,500,000. 5.5% bond on 1 October 20X1. At this time, market interest rates are in the range of 5%. The bond had a 10 year life from 1 October 20X4, and paid interest semi-annually on 31 March and 30 September. (PVS1 PVA Si, and PVAD OLS) (Use appropriate factor(s) from the toblos provided.) Required: 1. Calculate the proceeds that would be raised on bond issuance. (Round time value foctor to 5 decimal places. Do not round Intermediate calculations. Round your final answer to the nearest whole dollar amount.) Answer is complete but not entirely correct. Proceeds from bond issuance $ 12 997 941 X 2. Prepare an amortization table using the effective interest method of amortization Complete the first four payments only (Round time value foctor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Answer is complete but not entirely correct. Cash Period Interest Interest Dorp Closing Net Expense Amortization Paid Bond Llab. Op $ 12.997,941 balance $ 371.250s 324 948 XS 46,302 $ $ 12,951,8393 2 S 371 250S 323 791 XS 47,459 12 904 180 X 3 S 371 250 S 322 0043 S 48 648 S 12.855,534X S 371 250 321 388 XS 49,882 % $12 805,872 X 1 4 S 3. Prepare Journal entries for 20x4 and 20x5, using the effective interest method. ABC has a 31 December fiscal year-end. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Answer is not complete. No Date General Journal Debit Credit 1 1 October 20X4 Cash 12.997.941 Premium on bonds payable 502 0503 Bonds payable 13.500.000 OOO 2 31 December 20 interest expense Premium on bonds payable Interest payabile 162.4743 23.151 185.025 OOO 00 13 31 March 2005 Interest payable Interest expense Premium on bonds payable Cash 185 625 139.323 46 302 371.250 30 September 20. Interest expense Premium on bonds payable Cash 323 7913 47459 371 250 1 1 October 20X4 Cash Premium on bonds payable Bonds payable 12,997,941 502059 X 13 500 000 2 31 December 20) Interest expense Premium on bonds payable Interest payable 162 474 23.151 185 625 3 31 March 20X5 Interest payable Interest expense Premium on bonds payable >>> 185,625 139,323 % 46,302 Cash 371 250 4 323 791 47 459 30 September 20 Interest expense Premium on bonds payable Cash 161 895 5 23.730.X 31 December 20% Interest expense Premium on bonds payable Interest payable 185 625
