Question
Ari Goldstein issued $300,000 of 11%, five-year bonds payable on January 1, 2018. The market interest rate at the date of issuance was 10%, and
Ari Goldstein issued $300,000 of 11%, five-year bonds payable on January 1, 2018. The market interest rate at the date of issuance was 10%, and the bonds pay interest semiannually.
Requirement 1. How much cash did the company receive upon issuance of the bonds payable? (Round to the nearest dollar.) (Use the factor tables provided with factors rounded to three decimal places. Round all currency amounts to the nearest dollar.)
Upon issuance of the bonds payable, the company received $ |
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Requirement 2. Prepare an amortization table for the bond using the effective-interest method, through the first two interest payments. (Round to the nearest dollar.)
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01/01/2018 |
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06/30/2018 |
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12/31/2018 |
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Requirement 3. Journalize the issuance of the bonds on January 1,
20182018,
and the first and second payments of the semiannual interest amount and amortization of the bonds on June 30,
20182018,
and December 31,
20182018.
Explanations are not required. (Record debits first, then credits. Exclude explanations from any journalentries.)
Start by journalizing the issuance of the bonds on January 1,
20182018.
(Prepare a single compound entry.)
Date | Accounts | Debit | Credit | ||
2018 |
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Jan. 1 |
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Journalize the payment of the first semiannual interest amount and amortization of the bond on June 30,
20182018.
(Prepare a single compound entry.)
Date | Accounts | Debit | Credit | ||
2018 |
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Jun. 30 |
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Journalize the payment of the second semiannual interest amount and amortization of the bond on December 31,
20182018.
(Prepare a single compound entry.)
Date | Accounts | Debit | Credit | ||
2018 |
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Dec. 31 |
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