Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
can you please make it to where the answer is not cut out and i can see it fully thank you December On January 1,
can you please make it to where the answer is not cut out and i can see it fully thank you
December On January 1, 2024. Agricultural Read the recuirements Requirements than face value to acquire them Requirement 1. If the market ind The 8% bonds issued when the Requirement 2. If the marketing The 8% bonds issued when the Requirement 3. The issue price then credits. Select explanations a Journalize the issuance of the 1. If the market interest rate is 5% when ACU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain 2. If the market interest rate is 9% when ACU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain 3. The issue price of the bonde is 97 Journalize the following bond transactions a. Issuance of the bonds on January 1, 2024 b. Payment of interest and amortization on June 30, 2024 G. Payment of interest and amortization on December 31, 2024 d. Rotrement of the bond at maturity on December 31, 2043, assuming the last interest payment has already been recorded han face value to acquire them ution method. Record debits first Accoud Date 2024 Jan 1 Print Done Cash Discount on Bonds P4 On January 1, 2024. Agricultural Credit Union (ACU) issued 8%, 20-year bonds payable with face value of $900,000. The bonds pay Interest on June 30 ANS Requirement 1. If the market interest rate is 5% when ACU issues its bonds, will the bonds bo priced at face value, at a premium, or at a discount? Explain. The 8% bonds issued when the market interest rate is 5% will be priced at a premium They are attractive in this market, so investors will pay more than face value to acquire them Requirement 2. if the market interest rato is 9% when ACU issues ts bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain The 8% bonds issued when the market interest rate is 9% will be priced at a discount They are unatractive in this market, so investors will pay less than face value to acquire them Requirements. The issue price of the bonds is 97. Journalize the bond transactions. Assume bonds payable aro amortized using the straight-line amortization method. Record debits first, then credits. Select explanations on the last line of the journal entry Round your answers to the nearest whole dollar) 2. Joumalize the issuance of the bonds on January 1, 2024 Accounts and Explanation Debit Credit 2024 Cash Discount on Bonds Payable Bonds Payable Date Jan 1 b. Journalize the payment of interest and amortization on June 30, 2024. Dato Accounts and Explanation Debit Credit 2024 Jun. 30 c. Journalize the payment of interest and amortization on December 31, 2024 Date Accounts and Explanation Dobit 2024 Dec 31 Credit c. Journalize the payment of interest and amortization on December 31, 2024 Date Accounts and Explanation Debit Credit 2024 Dec 31 d. Retirement of the bond at maturity on December 31, 2043, assuming the last interest payment has already been recorded. Date Accounts and Explanation Debit Credit 2043 Dec 31 d. Retirement of the bond at maturity on December 31, 2043, assuming the last interest payment has already been recorded. Accounts and Explanation Credit Date Debit 2043 Dec. 31
can you please make it to where the answer is not cut out and i can see it fully thank you
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669e4e117ad01_705669e4e111e0ba.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669e4e121774d_705669e4e11abca5.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669e4e12b1af2_706669e4e1248c13.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669e4e134c1e2_706669e4e12e0db6.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669e4e13d3a9b_707669e4e137ce2e.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started