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Chapter 14 Long Term Liabilities: Bonds and Notes 713 Year 3 June 30. Recorded the redemption of the bonds, which were called at 98. The
Chapter 14 Long Term Liabilities: Bonds and Notes 713 Year 3 June 30. Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $9,420,961 after payment of interest and amor tization of discount have been recorded. Record the redemption only Sept. 30. Paid the second annual payment on the note, which consisted of interest $10,280 and principal of $30,393. Instructions 1. Journalize the entries to record the foregoing transactions. Round all amounts to the nearest dollar. 2. Indicate the amount of the interest e xpense in (a) Year 1 and (b) Year 2. 3. Determine the carrying amount of the bonds as of December 31, Year 2. Appendix 1 and Appendix 2 PR 14-5A Bond discount, entries for bonds payable transactions, interest method of amortizing bond discount On July 1, Year 1, Danzer Industries Inc. issued Sio,000,000 of 10-year, 7% bonds a market (effective) interest rate of 8%, receiving cash of $37,282,062. Interest on the bor ually on December 31 and June 30. The fiscal year of the compa
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