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Bond Din Entries for Bonds Payable tractions On July 1, Year 1, Dance Industries Inc, issued 1,000,000 of 7- 9% bonds at a market effective
Bond Din Entries for Bonds Payable tractions On July 1, Year 1, Dance Industries Inc, issued 1,000,000 of 7- 9% bonds at a market effective interest rate of 10% December 31 and June 30. The fiscal year of the company is the calendar year receiving cash of $7.604.070. Interest on the brands is payable on Required: 1. Journalire the entry to record the amount of cash proceeds from the of the bands only 1 Year 1. If an amount box does not require an entry leave it blank 2. Journalize the entries to record the following: If an amount box does not require an entry leave it bank a. The first semiannual interest payment on December 31, Year 1. and the amortization of the bond discount, using the straight-line method. (Round your to the nearest dollar) b. The interest payment on June 30. Year 2. and the amortization of aight-line method. (Round your answer to the nearest dollar) 3. Determine the total interest expense for Year 1. Round to the nearest dollar 4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest 4. Will the band proces always be less than the face of the bonds when the contract s than the rate of 5. Compute the price of $7.604,070 received for the bonds by using Exhibit and E from the price given due to rounding differences . (Pound youPV values to decimal places and the final answers to the nearest dollar) Your total may vary slightly Present value of the faceamet Present of these annual interest payments Price received for the bonds
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