Ch 10 P 10-4a i saved Saved 1 Part 1 of 4 Required information Problem 10-4A (Algo) Straight-Line: Amortization of bond discount LO P2 [The following information applies to the questions displayed below.) - 4 points Legacy issues $650,000 of 5.0%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $584,361 when the market rate is 8%. Problem 10-4A (Algo) Part 1 eBook Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. Ask View transaction list View journal entry worksheet Print No Date General Journal Debit Credit References 1 January 01 Cash 584,361 65,639 Discount on bonds payable Bonds payable 650,000 2 Required information Part 2 of 4 Problem 10-4A (Algo) Straight-Line: Amortization of bond discount LO P2 [The following information applies to the questions displayed below.] 4 points Legacy issues $650,000 of 5.0%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $584,361 when the market rate is 8%. Problem 10-4A (Algo) Part 2 eBook 2. Determine the total bond interest expense to be recognized over the bonds' life. Ask Print 195,640 mer Total bond interest expense over life of bonds: Amount repaid: 8 payments of $ 24,455 $ Par value at maturity Total repaid Less amount borrowed Total bond interest expense $ References 195,640 195,640 3 Part 3 of 4 Required information Problem 10-4A (Algo) Straight-Line: Amortization of bond discount LO P2 [The following information applies to the questions displayed below.] 6 points Legacy issues $650,000 of 5.0%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $584,361 when the market rate is 8%. Problem 10-4A (Algo) Part 3 eBook 3. Prepare a straight-line amortization table for the bonds' first two years. (Round your intermediate and final answers to the nearest whole dollar.) Ask Semiannual Period-End Print Unamortized Discount Carrying Value $ 65,639 $ 584,361 01/01/2021 06/30/2021 References 12/31/2021 06/30/2022 12/31/2022 4 Part 4 of 4 Required information Problem 10-4A (Algo) Straight-Line: Amortization of bond discount LO P2 [The following information applies to the questions displayed below.] 6 points Legacy issues $650,000 of 5.0%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $584,361 when the market rate is 8%. Problem 10-4A (Algo) Part 4 eBook 4. Prepare the journal entries to record the first two interest payments. Ask View transaction list View journal entry worksheet Print No Date General Journal Debit Credit 1 June 30 References ond terest expense Discount on bonds payable Cash 2 December 31 Bond interest expense Discount on bonds payable Cash
