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Ben Norton, Inc. issued $400,000 of 16%, five-year bonds payable on January 1, 2018. The market interest rate at the date of issuance was 14%,
Ben Norton, Inc. issued $400,000 of 16%, five-year bonds payable on January 1, 2018. The market interest rate at the date of issuance was 14%, and the bonds pay interest semiannually. 13/Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Read the requirements 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 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.) Interest Carrying Amount Cash Pald Expense Amortized 01/01/2018 08/30/2018 12/31/2018 Requirement 3. Journalize the issuance of the bonds on January 1, 2018, and the first and second payments of the semiannual interest amount and amortization of the bonds on June 30, 2018, and December 31, 2018. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) Start by joumalizing the issuance of the bonds on January 1, 2018. (Prepare a single compound entry) Date Accounts Debit Credit 2018 Jan. 1
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