| | Exercise 14-16 On June 30, 2020, Oriole Limited issued $6 million of 20-year, 10% bonds for $6,552,054, which provides a yield of 9%. The company uses the effective interest method to amortize any bond premium or discount. The bonds pay semi-annual interest on June 30 and December 31. | | | | | Prepare the journal entries to record the following transactions: (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) | 1. | | The issuance of the bonds on June 30, 2020 | | 2. | | The payment of interest and the amortization of the premium on December 31, 2020 | | 3. | | The payment of interest and the amortization of the premium on June 30, 2021 | | 4. | | The payment of interest and the amortization of the premium on December 31, 2021 | | Date | Account Titles and Explanation | Debit | Credit | | June 30, 2020 | enter an account title for the journal entry on June 30 | enter a debit amount | enter a credit amount | | | enter an account title for the journal entry on June 30 | enter a debit amount | enter a credit amount | | Dec. 31, 2020 | enter an account title for the journal entry on December 31 | enter a debit amount | enter a credit amount | | | enter an account title for the journal entry on December 31 | enter a debit amount | enter a credit amount | | | enter an account title for the journal entry on December 31 | enter a debit amount | enter a credit amount | | June 30, 2021 | enter an account title for the journal entry on June 30 | enter a debit amount | enter a credit amount | | | enter an account title for the journal entry on June 30 | enter a debit amount | enter a credit amount | | | enter an account title for the journal entry on June 30 | enter a debit amount | enter a credit amount | | Dec. 31, 2021 | enter an account title for the journal entry on December 31 | enter a debit amount | enter a credit amount | | | enter an account title for the journal entry on December 31 | enter a debit amount | enter a credit amount | | | enter an account title for the journal entry on December 31 | enter a debit amount | enter a credit amount | | | | | | Show the proper presentation for the liability for bonds payable on the December 31, 2020 SFP. (Round answer to 0 decimal places, e.g. 5,275.) | Oriole Limited Statement of Financial Position (Partial) choose the accounting period For the Quarter Ended December 31, 2020December 31, 2020For the Year Ended December 31, 2020 | | select an opening section name Total Intangible AssetsLong-term LiabilitiesIntangible AssetsTotal Current LiabilitiesTotal Liabilities and Partners' EquityLong-term debt InvestmentsTotal LiabilitiesCurrent LiabilitiesTotal Property, Plant and EquipmentProperty, Plant, and EquipmentTotal Non-current LiabilitiesTotal Current AssetsTotal Long-term InvestmentsTotal Long-term LiabilitiesPartners' EquityTotal Partners' EquityTotal AssetsCurrent Assets | | | | enter a balance sheet item | | $enter a dollar amount | | | | | | What amount of interest expense is reported for 2020? | Interest expense to be reported | | $enter a dollar amount of Interest expense to be reported | | | | | | What is the total cost of borrowing over the life of the bond? (Round answer to 0 decimal places, e.g. 5,275.) | Total cost of borrowing over the life of the bond | | $enter the Total cost of borrowing over the life of the bond in dollars rounded to 0 decimal places | | | | | | | Question Attempts: 0 of 5 used | | SAVE FOR LATER | SUBMIT ANSWER | | | | |
