HI. Please help. I am stuck on question 5.
I uploaded screenshots of the rest of my answers.
Thank you!
National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $500,000 on January 1, 2021. The bonds mature on December 31, 2024 (4 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds at January 1, 2021. 2. Prepare the journal entry to record their issuance by National on January 1, 2021. 3. Prepare an amortization schedule that determines interest at the effective rate each period. 4. Prepare the journal entry to record interest on June 30, 2021. 5. Prepare the appropriate journal entries at maturity on December 31, 2024. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare the appropriate journal entries at maturity on December 31, 2024. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.) No General Journal Credit Debit 500,000 1 Date December 31, 202 Bonds payable Cash 500,000 2 December 31, 202 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Determine the price of the bonds at January 1, 2021. (Round final answers to the nearest whole dollar.) Table values are based on: 8 5.0% Present Cash Flow Amount Value Interest $ 22,500 145,422 Principal 500,000 338,420 Price of bonds $ 483,842 $ Required 1 Required 2 > Required: 1. Determine the price of the bonds at January 1, 2021. 2. Prepare the journal entry to record their issuance by National on January 1, 2021. 3. Prepare an amortization schedule that determines interest at the effective rate each period. 4. Prepare the journal entry to record interest on June 30, 2021. 5. Prepare the appropriate journal entries at maturity on December 31, 2024. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare the journal entry to record their issuance by National on January 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.) No Date General Journal Debit Credit January 01, 2021 Cash 483,842 Discount on bonds payable 16,158 Bonds payable 500,000 1 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare an amortization schedule that determines interest at the effective rate each period. (Round intermediate calculations and final answers to the nearest whole dollar.) Cash Interest Bond Interest Expense Discount Amortization Carrying Value Semiannual Interest Period-End 01/01/2021 06/30/2021 $ $ 12/31/2021 06/30/2022 12/31/2022 06/30/2023 12/31/2023 22,500 22,500 22,500 22,500 22,500 22,500 30 24,192 24,277 24,366 24,459 24,557 24,660 24.768 24,879 196,158 1,692 1,777 1,866 1,959 2,057 483,842 485,534 487,311 489,177 491,136 493,193 495,353 497,621 500,000 06/30/2024 12/31/2024 22,500 22,500 180,000 2,160 2,268 2,379 16,158 Total $ $ $ Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare the journal entry to record interest on June 30, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.) No Date Debit Credit 1 June 30, 2021 General Journal Interest expense Discount on bonds payable Cash 24,192 1,692 22,500
