E9-48.Stat eBook Print Question 1 Incomplete answer Marked out of 62.00 P Fag question a. Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1, 2019, Trueman Corp. issued $600,000 of 20-year, 11% bonds for $554,860, yielding a market yield) rate of 12%. Interest payable semiannually on June 30 and December 31. Required Confirm the bond issue price, b. Prepare journal entries to record the bond issuance, semiannual interest payment and discount amortization on June 30, 2019, and semiannual interest payment and discount amortization on December 31, 2019. Use the effective interest rate method. c. Post the journal entries from part b to their respective T-accounts. d. Trueman elected to report these bonds in its financial statements at fair value. On December 31, 2019, these bonds were listed in the bond market at a price of 101 (or 101% of par value). What entry is required to adjust the reported value of these bonds to fair value? e. Prepare a table summarizing the effect of these bonds on earnings for 2019. Confirm Bond Price Journal entries T-accounts Fair Value Entry/Earnings Table Note: Round your answers to the nearest dollar. Present value of principal repayment $ 58,333 Present value of interest payments $ 496,528 Selling price of bonds $ 554,860 Please answer all parts of the question. Check E9-48.Stat eBook Print Question 1 incomplete answer Marked out of 62.00 P Flag question Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1, 2019, Trueman Corp. issued $600,000 of 20 year, 11% bonds for $554,860, yielding a market (yield) rate of 12%. Interest is payable semiannually on June 30 and December 31. Required a. Confirm the bond issue price b. Prepare journal entries to record the bond issuance, semiannual interest payment and discount amortization on June 30, 2019, and semiannual interest payment and discount amortization on December 31, 2019. Use the effective interest rate method. C. Post the journal entries from part b to their respective T-accounts. d. Trueman elected to report these bonds in its financial statements at fair value. On December 31, 2019, these bonds were listed in the bond market at a price of 101 (or 101% of par value). What entry is required to adjust the reported value of these bonds to fair value? e. Prepare a table summarizing the effect of these bonds on earnings for 2019, Confirm Bond Price Journal entries T-accounts Fair Value Entry/Earnings Table Cash (A) 0 Bonds Payable (L) 0 0 0 01/01/19 06/30/19 12/31/19 01/01/19 06/30/19 12/31/19 Interest Expense (E) 0 0 0 0 0 0 0 01/01/19 06/30/19 12/31/19 Bond Discount (XL) 0 0 0 0 0 01/01/19 06/30/19 12/31/19 0 0 0 0 0 600,000 0 0 0 E9-48 Stat eBook E Print Question 1 Incomplete answer Marked out of 62.00 Flag question Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1, 2019, Trueman Corp. issued $600,000 of 20 year, 11% bonds for $554,860, yielding a market (yield) rate of 12%. Interest is payable semiannually on June 30 and December 31. Required a. Confirm the bond issue price. b. Prepare journal entries to record the bond issuance, semiannual interest payment and discount amortization on June 30, 2019, and semiannual interest payment and discount amortization on December 31, 2019. Use the effective interest rate method. C. Post the journal entries from part b to their respective T-accounts. d. Trueman elected to report these bonds in its financial statements at fair value. On December 31, 2019, these bonds were listed in the bond market at a price of 101 (or 101% of par value). What entry is required to adjust the reported value of these bonds to fair value? e. Prepare a table summarizing the effect of these bonds on earnings for 2019. Confirm Bond Price Journal entries T-accounts Fair Value Entry/Earnings Table Note: Round your answers to the nearest dollar. General Journal Date Description Debit Credit 01/01/19 Cash 554,861 600,000 Bond discount 45,140 0 Bonds payable 0 6/30/19 Interest expense 34,129 1,129 Bond discount 0 33,000 Cash 0 0 12/31/19 Interest expense 34,129 1,129 Bond discount 0 33.000 Cash 0 0 E9-48.Stat eBook Print Question 1 Incomplete answer Marked out of 62.00 P Fag question a. Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1, 2019, Trueman Corp. issued $600,000 of 20-year, 11% bonds for $554,860, yielding a market yield) rate of 12%. Interest payable semiannually on June 30 and December 31. Required Confirm the bond issue price, b. Prepare journal entries to record the bond issuance, semiannual interest payment and discount amortization on June 30, 2019, and semiannual interest payment and discount amortization on December 31, 2019. Use the effective interest rate method. c. Post the journal entries from part b to their respective T-accounts. d. Trueman elected to report these bonds in its financial statements at fair value. On December 31, 2019, these bonds were listed in the bond market at a price of 101 (or 101% of par value). What entry is required to adjust the reported value of these bonds to fair value? e. Prepare a table summarizing the effect of these bonds on earnings for 2019. Confirm Bond Price Journal entries T-accounts Fair Value Entry/Earnings Table Note: Round your answers to the nearest dollar. Present value of principal repayment $ 58,333 Present value of interest payments $ 496,528 Selling price of bonds $ 554,860 Please answer all parts of the question. Check
