A13-8 Interest Expense (LO 13-4) Hambelton Ltd. issued $3,800,000 of 5% bonds payable on 1 September 20X9 to yield 4% Interest on the bonds is paid semi-annually and is payable each 28 February and 31 August. The bonds were dated 1 March 20x8, and had an original term of five years. The accounting period ends on 31 December. The effective interest method is used. (PVOL $1. PVA of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1, Determine the price at which the bonds were issued (Round time value foctor to 5 decimal places. Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) Price of Bond 2. Prepare a bond amortization table for the life of the bond. (Round time volue factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no cells blank.be certain to enter "0" wherever required.) 2. Prepare a bond amortization table for the life of the bond. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no cells blank - be certain to enter "0" wherever required.) Date interest Payment Interest Expense Premium Amortization Unamortized Premium Net Bond Liability Opening 1 2 4 3 7 3 Propane journames to record the issuance of the bonds, payment of interest and all necessary adjustments through to the end of 20x10. Of no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your Answers to the nearest whole dollar amount) Views 3. Prepare journal entries to record the issuance of the bonds, payment of Interest, and all necessary adjustments through to the end of 20x10. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount) View transaction list Journal entry worksheet Record the payment of interest on bonds. Notes Enter debits before credits Date General Journal Debit Credit 31 August 20X10 View transaction list Journal entry worksheet 1 2 3 Can Record the accrual of Interest expense. Note: Enter debits before credits Date General Journal Debit Credit 31 December 20X10 4. Calculate the interest expense that would be recorded in each of 20x9 and 20x10. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) 20X9 20X10 Interest expense 5. Show how the bond would be presented on the statement of firsancial position as of 31 December 20x9 and 20x10. (Do not round Intermediate calculations. Round your final answers to the nearest whole dollar amount) HAMBELTON LIMITED Statement of Financial Position (Partial As of 31 December 20X9 20X10 Bonds payable Premium on bond payable
