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Accounting for long term liabilities 1 Required information [The following information applies to the questions displayed below.] Hillside issues $1,900,000 of 5%,15 yyear bonds dated

Accounting for long term liabilities 1

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Required information [The following information applies to the questions displayed below.] Hillside issues $1,900,000 of 5%,15 yyear bonds dated January 1,2021 , that pay interest semiannually on June 30 and December 31 . The bonds are issued at a price of $2,325,594. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2 (a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below. Prepare the January 1 journal entry to record the bonds' issuance. Journal entry worksheet Record the issue of bonds with a par value of $1,900,000 on January 1,2021 at an issue price of $2,325,594. Note: Enter debits before credits. \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline Reg 1 & Req 2A to 2C & Req 3 & Req 4 & Req 5 \\ \hline For each semiannual period, compute (a) the cash payment, (b) the straight-line premium amortization, and (c) the bond interest expense. (Round your final \end{tabular} answers to the nearest whole dollar.) \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{1}{|c|}{ Par (maturity) value } & Annual Rate & Year & Semiannual cash interest payment \\ \hline 2(a) & & & & & \\ \hline \end{tabular} Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. epare the first two years of a straight-line amortization table. (Round your intermediate and final answers to the nearest hole dollar.) Prepare the journal entries to record the first two interest payments. (Round your intermediate and final answers to the nearest whole dollar.) Journal entry worksheet Note: Enter debits before credits. Prepare the journal entries to record the first two interest payments. (Round your intermediate and final answers to the nearest whole dollar.) Journal entry worksheet Record the second interest payment on December 31 . Note: Enter debits before credits

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