Question
Hillside issues $1,100,000 of 9%, 15-year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. The bonds are issued
Hillside issues $1,100,000 of 9%, 15-year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $950,524.
2(a) | For each semiannual period, complete the table below to calculate the cash payment. |
2(b) | For each semiannual period, complete the table below to calculate the straight-line discount amortization. |
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2(c) | For each semiannual period, complete the table below to calculate the bond interest expense. |
3. | Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. |
4 | Prepare the first two years of an amortization table using the straight-line method. |
5 | Prepare the journal entries to record the first two interest payments. |
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