Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1, 2016, Trueman Corp. issued $350,000 of 20-year, 11% bonds for $323,669, yielding a market (yield) rate of 12%. Interest is payable semiannually on June 30 and December 31. Required a. Confirm the bond issue price. b. Prepare journal entries to record the bond issuance, semiannual interest payment and discount amortization on June 30, 2016, and semiannual interest payment and discount amortization on December 31, 2016. Use the effective interest rate method. c. Post the journal entries from part b to their respective T-accounts. d. Trueman elected to report these bonds in its financial statements at fair value. On December 31, 2016, these bonds were listed in the bond market at a price of 101 (or 101% of par value). What entry is required to adjust the reported value of these bonds to fair value? e. Prepare a table summarizing the effect of these bonds on earnings for 2016. Confirm Bond Price Journal entries T-accounts Fair Value Entry/Earnings Table Note: Round your answers to the nearest dollar. General Journal Date 01/01/16 Cash Description Debit Credit 6/30/16 Cash 12/31/16 Cash Please answer all parts of the question. Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1, 2016, Trueman Corp. issued $350,000 of 20-year, 11% bonds for $323,669, yielding a market (yield) rate of 12%. Interest is payable semiannually on June 30 and December 31. Required a. Confirm the bond issue price. b. Prepare journal entries to record the bond issuance, semiannual interest payment and discount amortization on June 30, 2016, and semiannual interest payment and discount amortization on December 31, 2016. Use the effective interest rate method. c. Post the journal entries from part b to their respective T-accounts. d. Trueman elected to report these bonds in its financial statements at fair value. On December 31, 2016, these bonds were listed in the bond market at a price of 101 (or 101% of par value). What entry is required to adjust the reported value of these bonds to fair value? e. Prepare a table summarizing the effect of these bonds on earnings for 2016. Confirm Bond Price Journal entries T-accounts Fair Value Entry/Earnings Table Cash (A) Bonds Payable (L) 01/01/16 01/01/16 06/30/16 06/30/16 12/31/16 12/31/16 Bond Discount (XL) 01/01/16 06/30/16 12/31/16 Please answer all parts of the question. Interest Expense (E) 01/01/16 06/30/16 12/31/16 Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1, 2016, Trueman Corp. issued $350,000 of 20-year, 11% bonds for $323,669, yielding a market (yield) rate of 12%. Interest is payable semiannually on June 30 and December 31. Required a. Confirm the bond issue price. b. Prepare journal entries to record the bond issuance, semiannual interest payment and discount amortization on June 30, 2016, and semiannual interest payment and discount amortization on December 31, 2016. Use the effective interest rate method. c. Post the journal entries from part b to their respective T-accounts. d. Trueman elected to report these bonds in its financial statements at fair value. On December 31, 2016, these bonds were listed in the bond market at a price of 101 (or 101% of par value). What entry is required to adjust the reported value of these bonds to fair value? e. Prepare a table summarizing the effect of these bonds on earnings for 2016. Confirm Bond Price Journal entries T-accounts Fair Value Entry/Earnings Table Date 12/31/2016 Description Coupon payments Discount amortization Total interest expense Fair value adjustment $ Total effect on income (deduction) $ Please answer all parts of the question. Debit Credit