C. options are ((discount price of $425,000 // issuance at par value // premium price of $510,000)) and ((receives $425,000 and must pay back $480,000 at maturity // receives $510,000 and must pay back $480,000 at maturity // recieves $480,000 and must pay back $480,000 at maturity))
please help thank you
Columbus, Inc. issued $480,000 of 20-year, 6 percent bonds payable on January 1, Columbus, Inc., pays interest each January 1 and July 1 and amortizes any discount or premium by the straight-line method. Columbus, Inc., can issue its bonds payable under various conditions: (Click the icon to view the conditions.) Read the requirements Requirement 1. Journalize Columbus's issuance of the bonds and first semiannual interest payment for each situation. Explanations are not required. (Record debits first. then credits. Exclude explanations from any journal entries.) a. Record the issuance of the bonds payable at par valuo. Journal Entry Date Accounts Cash Premium on bonds payable Bonds payable Debit Credit Jan 1 450 Columbus, Inc., issued $480,000 of 20-year, 6 percent bonds payable on January 1. Columbus, Inc., pays interest each January 1 and July 1 and amortizes any discount or premium by the straight-line method Columbus, Inc., can issue its bonds payable under various conditions (Click the icon to view the conditions.) Read the requirements a. Record the payment of semiannual interest when the bonds are issued at pat Journal Entry Date Accounts Debit Credit Jul 1 o Columbus, Inc., issued $480,000 of 20-year, 6 percent bonds payable on January 1, Columbus, Inc, pays interest each January 1 and July 1 and amortizes any discount or premium by the straight-line method Columbus, Inc., can issue its bonds payable under various conditions: (Click the icon to view the conditions.) Read the requirements b. Record the payment of semiannual interest when the bonds are issued at a price of $425,000 and the market rate was above 6 percent. (Round to the nearest whole number) Journal Entry Accounts Date Debit Credit Jul 1 o Columbus, Inc., issued $480,000 of 20-year 6 percent bonds payable on January 1. Columbus, Inc.. pays interest each January 1 and July 1 and amortizes any discount or premium by the straight-line method. Columbus, Inc. can issue its bonds payable under various conditions: (Click the icon to view the conditions.) Read the requirements c. Record the issuance at a price of $510,000 when the market rate was below 6 percent. Journal Entry Credit Date Accounts Debit Jan 1 Columbus, Inc., issued $480,000 of 20-year, 6 percent bonds payable on January 1, Columbus, Inc., pays interest each January 1 and July 1 and amortizes any discount or premium by the straight-line method Columbus, Inc., can issue its bonds payable under various conditions: (Click the icon to view the conditions.) Read the requirements c. Record the payment of semiannual interest when the bonds are issued at a price of $510,000 when the market rate was below 6 percent. (Round to the nearest whole number) Journal Entry Accounts Debit Credit Date 1 Jul Requirement 2. Which condition results in the most interest expense for Columbus, Inc. ? Explain in detail The results in the most interest expense. The reason for this is because Columbus
