Entries for Issuing Bonds and Amortizing Discount by Straight Line Method On the first day of its fiscal year, Jacinto Company issued $12,400,000 of five year, 5 bonds to finance its operations of producing and selling home improvement products Interest is payable semiannually The bonds were issued at a market (effective) interest rate of 6 , resulting in Jacinto Company receiving cash of $11,871,078 a Journalize the entries to record the following Issuance of the bonds First semiannual interest payment The bond discount amortization is combined with the semiannual interest payment Second semiannual interest payment The bond discount amortization is combined with the semiannual interest payment If an amount box does not require an entry, leave it blank Round your answers to the nearest dollar 1 fill in the blank 25cdcf04dfd7ff7 2 fill in the blank 25cdcf04dfd7ff7 3 fill in the blank 25cdcf04dfd7ff7 5 fill in the blank 25cdcf04dfd7ff7 6 fill in the blank 25cdcf04dfd7ff7 8 fill in the blank 25cdcf04dfd7ff7 9 2 fill in the blank 25cdcf04dfd7ff7 11 fill in the blank 25cdcf04dfd7ff7 12 fill in the blank 25cdcf04dfd7ff7 14 fill in the blank 25cdcf04dfd7ff7 15 fill in the blank 25cdcf04dfd7ff7 17 fill in the blank 25cdcf04dfd7ff7 18 3 fill in the blank 25cdcf04dfd7ff7 20 fill in the blank 25cdcf04dfd7ff7 21 fill in the blank 25cdcf04dfd7ff7 23 fill in the blank 25cdcf04dfd7ff7 24 fill in the blank 25cdcf04dfd7ff7 26 fill in the blank 25cdcf04dfd7ff7 27 b Determine the amount of the bond interest expense for the first year Round your answer to the nearest dollar $fill in the blank 6df892fdd07802f 1 c Why was the company able to issue the bonds for only $11,871,078 rather than for the face amount of $12,400,000 The market rate of interest is the contract rate of interest

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Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Jacinto Company issued $12,400,000 of five-year, 5%

Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method

On the first day of its fiscal year, Jacinto Company issued $12,400,000 of five-year, 5% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 6%, resulting in Jacinto Company receiving cash of $11,871,078.

a. Journalize the entries to record the following:

Issuance of the bonds.
First semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment.
Second semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment.

If an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar.

1.	fill in the blank 25cdcf04dfd7ff7_2	fill in the blank 25cdcf04dfd7ff7_3
	fill in the blank 25cdcf04dfd7ff7_5	fill in the blank 25cdcf04dfd7ff7_6
	fill in the blank 25cdcf04dfd7ff7_8	fill in the blank 25cdcf04dfd7ff7_9
2.	fill in the blank 25cdcf04dfd7ff7_11	fill in the blank 25cdcf04dfd7ff7_12
	fill in the blank 25cdcf04dfd7ff7_14	fill in the blank 25cdcf04dfd7ff7_15
	fill in the blank 25cdcf04dfd7ff7_17	fill in the blank 25cdcf04dfd7ff7_18
3.	fill in the blank 25cdcf04dfd7ff7_20	fill in the blank 25cdcf04dfd7ff7_21
	fill in the blank 25cdcf04dfd7ff7_23	fill in the blank 25cdcf04dfd7ff7_24
	fill in the blank 25cdcf04dfd7ff7_26	fill in the blank 25cdcf04dfd7ff7_27

b. Determine the amount of the bond interest expense for the first year. Round your answer to the nearest dollar. $fill in the blank 6df892fdd07802f_1

c. Why was the company able to issue the bonds for only $11,871,078 rather than for the face amount of $12,400,000? The market rate of interest is the contract rate of interest.