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Cha mps Ltd is authorized to issue $2,000,000 of 1%, 10-year bonds payable On December 31, 2018 when the market interest rate is 6%, the
Cha mps Ltd is authorized to issue $2,000,000 of 1%, 10-year bonds payable On December 31, 2018 when the market interest rate is 6%, the company issues $1,600,000 of the bonds. Champs amortizes bond discount using the effective-interest method. The semiannual interest dates are June 30 and December 31. Read the requirements. Requirement 1.Use the PV function in Excel to calculate the issue price of the bonds. (Round your answer to the nearest whole dollar) The issue price of the bonds is Requirement 2. Prepare a bond amortization table for the first year of the bonds. (Round your answers to the nearest whole dollar.) Champs Ltd. Amortization Table Semiannual nterest Date Dec 31, 2018 Jun 30, 2019 Dec 31, 2019 Discont Discout Account Bond Carrying Amortization Interest Interest Payment Expense Balance Amount Requirement 3. Record the issuance of the bonds payable on December 31, 2018; the first semiannual interest payment on June 30, 2019, and the second payment on December 31, 2019. (Record debits first, then credits. Exclude explanations from any journal entries.) Start by recording the issuance of the bonds on December 31, 2018 Journal Entry Date Accounts Debit Credit Dec 31 Record the first semiannual interest payment on June 30, 2019. Journal Entry Date Accounts Debit Credit June 30 Record the second semiannual interest payment on December 31, 2019 Journal Entry Date Accounts Debit Credit Dec 31
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