E10-13 (Algo) Recording and Reporting a Bond Issued at a Premium (with Premium Account) LO10-5

Park Corporation is planning to issue bonds with a face value of $3,100,000 and a coupon rate of 7 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a premium account. Assume an annual market rate of interest of 6.0 percent. (FV of $1 (https://ezto.mheducation.com/extMedia/bne/accounting/Libby_10e/FV1.jpg), PV of $1 (https://ezto.mheducation.com/extMedia/bne/accounting/Libby_10e/PV1.jpg), FVA of $1 (https://ezto.mheducation.com/extMedia/bne/accounting/Libby_10e/FVA1.jpg), and PVA of $1 (https://ezto.mheducation.com/extMedia/bne/accounting/Libby_10e/PVA1.jpg)

)

Note: Use appropriate factor(s) from the tables provided.

Required:

1. and 2.

Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year

3.

What bonds payable amount will Park report on its June 30 balance sheet?

E10-13 (Algo) Recording and Reporting a Bond Issued at a Premium (with Premium Account) LO10-5 Park Corporation is planning to issue bonds with a face value of $3,100,000 and a coupon rate of 7 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a premium account. Assume an annual market rate of interest of 6.0 percent. (EV of \$1, PV of \$1, FVA of \$1, and PVA of \$1) Note: Use appropriate factor(s) from the tables provided. Required: 1. and 2. Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year 3. What bonds payable amount will Park report on its June 30 balance sheet? Complete this question by entering your answers in the tabs below. Prepare the journal entry to record the issuance of the bonds and the Interest payment on June 30 of this year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final answers to whole dollars. Record the issuance of the bonds. Note: Enter debits before credits. \begin{tabular}{|c|c|c|c|c|} \hline Date & General Journal & Debit & Credit \\ \hline January 01 & & & & \\ \hline & & & & \\ \hline & & & \\ \hline & & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} Record the payment of interest on June 30 using the effective-interest amortization method. Note: Enter debits before credits. 3. What donos payable amount wil Park report on its June su balance sheetr Complete this question by entering your answers in the tabs below. What bonds payable amount will Park report on its June 30 balance sheet? Note: Round your intermediate calculations and final answers to whole dollars