Hillside issues $1,400,000 of 5%, 15-year bonds dated January 1, 2019, that pay interest semiannually on...
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Hillside issues $1,400,000 of 5%, 15-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,713,594. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 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 premium amortization. 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 a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below. Req 1 Req 2A to 2C Req 3 Req 4 Req 5 For each semiannual period, compute (a) the cash payment, (b) the straight-line discount amortization, and (c) the bond interest expense. (Round "Unamortized Premium" to whole dollar and use the rounded value for part 4 & 5.) 2(a) Par (maturity) value Annual Rate Year Semiannual cash Interest payment 65,000 2(b) Bond price Par (maturity value) Premium on Bonds Payable Semiannual periods Straight-line premium amortization Semiannual cash 2(c) payment Premium amortization Bond interest expense Show less & Hillside issues $1,400,000 of 5%, 15-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,713,594. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 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 premium amortization. 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 a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below. Req 1 Req 2A to 2C Req 3 Req 4 Req 5 For each semiannual period, compute (a) the cash payment, (b) the straight-line discount amortization, and (c) the bond interest expense. (Round "Unamortized Premium" to whole dollar and use the rounded value for part 4 & 5.) 2(a) Par (maturity) value Annual Rate Year Semiannual cash Interest payment 65,000 2(b) Bond price Par (maturity value) Premium on Bonds Payable Semiannual periods Straight-line premium amortization Semiannual cash 2(c) payment Premium amortization Bond interest expense Show less &
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