E10-14 (Algo) (Chapter Supplement) Recording and Reporting a Bond Issued at a Premium (without Premium Account) LO10-5 Park Corporation is planning to issue bonds with a face value of $2,007,000 and a coupon rate of 10 percent. The bonds mature in 15 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 does not use a premium account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1. FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answers to whole dollars.) Required: 1.&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? Req 1 and 2 Req 3 Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No General Journal Debit Credit Date January 01 342,512 X Cash Bonds payable 342,512 X 2 June 30 Interest expense Bonds payable Cash 14,556 X 4,521 X 10,035 X Req 1 and 2 Req 3 > Req 1 and 2 Req3 What bonds payable amount will Park report on its June 30 balance sheet? PARK CORPORATION Balance Sheet (Partial) At June 30 Long-term liabilities Bonds payable $ 337,991 $ 337,991 E10-14 (Algo) (Chapter Supplement) Recording and Reporting a Bond Issued at a Premium (without Premium Account) LO10-5 Park Corporation is planning to issue bonds with a face value of $2,007,000 and a coupon rate of 10 percent. The bonds mature in 15 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 does not use a premium account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1. FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answers to whole dollars.) Required: 1.&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? Req 1 and 2 Req 3 Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No General Journal Debit Credit Date January 01 342,512 X Cash Bonds payable 342,512 X 2 June 30 Interest expense Bonds payable Cash 14,556 X 4,521 X 10,035 X Req 1 and 2 Req 3 > Req 1 and 2 Req3 What bonds payable amount will Park report on its June 30 balance sheet? PARK CORPORATION Balance Sheet (Partial) At June 30 Long-term liabilities Bonds payable $ 337,991 $ 337,991
