Chapter 14 HMWK eBook Show Me How 2. TMM. 14.02 Bond Discount, Entries for Bonds Payable Transactions 3. TMM. 14.03 On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $4,000,000 of 6-year, 10% bonds at a market (effective) interest rate of 11%, receiving cash of $3,827,628. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. 4. TMM. 14.05 Required: 5. TMM. 14.App2 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1. If an amount box does not require an entry, leave it blank. 6. PE.14.02.ALGO Cash 7. PE.14.03.ALGO Discount on Bonds Payable 8. PE.14.04.ALGO Bonds Payable 9. PE. 14.05.ALGO Feedback 10. PE. 14.06.ALGO Check My Work 11. PE.14.07.ALGO 2. Journalize the entries to record the following: If an amount box does not require an entry, leave it blank. Round your answer to the nearest dollar. 12. EX.14.05.ALGO a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method. 13. EX.14.06.ALGO Interest Expense Discount on Bonds Payable 14. EX.14.07.ALGO Cash 15. EX.14.22.APP1.ALGO Feedback 16. EX.14.21.APP1 Check My Work 17. PR. 14.02.ALGO The internet site 1.. 2n Vanud tomatization of the band diecast in the busiest lisamatkad 18. PR. 14.03.ALGO Chapter 14 HMWK eBook Show Me How Feedback 2. TMM.14.02 Check My Work 3. TMM. 14.03 4. TMM. 14.05 b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the straight-line method. 5. TMM. 14.App2 Interest Expense Discount on Bonds Payable 6. PE.14.02.ALGO Cash 7. PE.14.03.ALGO Feedback 8. PE. 14.04.ALGO Check My Work 9. PE.14.05.ALGO v 10. PE.14.06.ALGO 3. Determine the total interest expense for Year 1. Round to the nearest dollar. $ 11. PE.14.07.ALGO 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? Yes 12. EX.14.05.ALGO 13. EX.14.06.ALGO 5. Compute the price of $3,827,628 received for the bonds by using the Present value at compound interest, and Present value of an annuity. (Round to the nearest dollar.) Your total may vary slightly from the price given due to rounding differences. 14. EX.14.07.ALGO Present value of the face amount $ Present value of the semiannual interest payments 15. EX.14.22.APP1.ALGO Price received for the bonds $ 16. EX.14.21.APP1 : Feedback 17. PR. 14.02.ALGO Check My Work 18. PR. 14.03.ALGO Check My Work Previous Next