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Enviro Company issues 8%, 10-year bonds with a par value of $260,000 and semiannual interest payments. On the issue date, the annual market rate for

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Enviro Company issues 8%, 10-year bonds with a par value of $260,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 12. The straight-line method is used to allocate interest expense. 1. Using the implied selling price of 87 %, what are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life of these bonds? 3. What is the amount of bond interest expense recorded on the first interest payment date? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the implied selling price of 87 V, what are the issuer's cash proceeds from Issuance of these bonds? Cash proceeds Required 2 > Garcia Company issues 9.5%, 15-year bonds with a par value of $410,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 7.5%, which implies a selling price of 115 1/4. Prepare the journal entry for the issuance of these bonds for cash on January 1. No Credit Date Jan 01 Answer is complete but not entirely correct. General Journal Debit Cash 472,525 Bonds payable Premium on bonds payable 410,000 44,890 Return to Dunphy Company issued $38,000 of 8.5%, 10-year bonds at par value on January 1. Interest is paid semiannually each June 30 and December 31. Prepare the entries for (a) the issuance of the bonds and (b) the first interest payment on June 30. Answer is complete but not entirely correct. No General Journal Credit Date Jan 01 Debit 38,000 Cash Bonds payable 38,000 Jun 30 161,500 Bond interest expense Cash 161,800 Snap Company issues 12%, five-year bonds, on January 1 of this year, with a par value of $90,000 and semiannual Interest payments. U (0) (1) (2) semiannual Period-Ind January 1, issuance June 30, first payment December 31, second payment namortized Discount $6.000 6,120 5,440 Carrying Value $83,200 3,880 84,560 Use the above bond amortization table and prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first Interest payment on June 30, and the second interest payment on December 31 View transaction list Journal entry worksheet 1 2 3 Record the Issuance of the bonds. Note: Enter debits before credits. General Journal Debit Credit Date January 01 | 1

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