Exercise 14-9 On June 30, 2017, Bonita Company issued $4,800,000 face value of 13 bonds pay semiannual interest on June 30 and December 31. , 20 year bonds at $5,161,102, a yield of 12% Bonita uses the effective interest method to amortize bond premium or discount. The try is requir e d "No Entry for the accounts and enter for the Prepare the journal entries to record the following transactions Round answer to amount Credit ac t itles are automatically indented w nt is entered the mot indent manually) (1) The issuance of the hands on June 30, 2017 (2) The payment of interest and the amortization of the premium on December 31, 2017 (3) The payment of interest and the amortization of the premium on line 30, 2018 (4) The payment terest and the mo tion of the premium on December 31, 2018 Date Account Totes and Explanation (1) June 30, 2017 Bonds Payable Premam bonds Payable (2) December 31, 2017 Interest Expense Premium on bonds w e (3) June 30, 2018 Interest Expense Premium on bonds Payable Cash (3) June 30, 2018 Interest Expense Premium on Bonds Payable Cash (4) December 31, 2018 Interest Expense Premium on Bonds Payable Cash Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2018, balance Bonita Company Balance Sheet Policy. 2000-2019 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc. ULCULATOR FULL SCREEN PRINTER Bonita Company Balance Sheet Provide the answers to the following questions, (1) What amount of interest expense is reported for 2018? (Round answer to decimal places, 0.38,548.) Interest expense reported for 2018 (2) Will the bond interest expense reported in 2018 be the same as, greater than, or less than the amount that would be reported if the straight-line method of amortization were used? The bond interest expense reported in 2018 will be the amount that would be reported if the straight line method of amortization were used. (3) Determine the total cost of borrowing over the life of the bond (Round answer to O decimal places, 38,548.) Total cost of borrowing over the life of the bond CALCULATOR FULL SC (1) What amount of interest expense is reported for 2018? (Round answer to 0 decimal places, e.g. 38,548.) Interest expense reported for 2018 (2) Will the bond interest expense reported in 2018 be the same as, greater than, or less than the amount that would be reported if the straight-line method of amortua The bond interest expense reported in 2018 will be the amount that would be reported if the straight-line method of amortization were used. (3) Determine the total cost of borrowing over the life of the bond. (Round answer to O decimal places, e.. 38,548.) Total cost of borrowing over the life of the bonds (4) Will the total bond interest expense for the life of the bond be greater than the same as, or less than the total interest expense if the straight-line method of amorti The total bond interest expense for the life of the bond will be the total interest expense of the straight-line method of amortization were used. Click if you would like to Show Work for this questioni Open Show Work Hy By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor Ouestion Attempts of used
