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E7-38. Analyzing and Reporting Financial Statement Effects of Bond Transactions LO3, 4 On January 1, 2017, Shields Inc. issued $1,000,000 of 9%, 20-year bonds for
E7-38. Analyzing and Reporting Financial Statement Effects of Bond Transactions LO3, 4 On January 1, 2017, Shields Inc. issued $1,000,000 of 9%, 20-year bonds for $1,098,964, yielding a mar- ket (yield) rate of 8%. Semiannual interest is payable on June 30 and December 31 of each year. a.Show computations to confirm the bond issue price. b. Indicate the financial statement effects using the template for (1) bond issuance, (2) semiannual inter- est payment and premium amortization on June 30, 2017, and (3) semiannual interest payment and premium amortization on December 31, 2017
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