Hillside issues $2,300,000 of 8%, 15-year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $2,815,190. Required:
1. Prepare the January 1, 2018, 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 an amortization table using the straight-line method
5. Prepare the journal entries to record the first two interest payments.
Problem 10-3A Stralght-Line: Amortizatlon of bond premlum LO P1, P3 Hillside issues $2,300,000 of 8% , 15-year bonds dated January 1. 2018, that pay interest semiannually on June 30 and December The bonds are issued at a price of $2,815,190 Required: 1. Prepare the January 1, 2018. 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. 2c) 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 Doik rint Complete this question by entering your answers in the tabs below. rences Req1 Rea 4 Req 2A to 2C Req 3 Req 5 Prepare the January 1, 2018, journal entry to record the bonds issuance. View transaction list Journal entry worksheet Record the issue of bonds with par value of $2.300.000 cash on January 1, 2018 at an issue price of $2,815.190. Note Enter debits before credits Debit Credit General Journal Date Jan 01 2018 View general journal Clear entry Record entry Req 2A to 2C Problem 10-3A Stralght-Line: Amortizatlon of bond premlum LO P1, P3 Hillside issues $2,300,000 of 8% , 15- year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31 The bonds are issued at a price of $2,815,190. Required: 1. Prepare the January 1, 2018. journal entry to record the bonds' issuance 2a) For each semiannual period, complete the table below to calculate the cash payment 2b) For each semiannual period, complete the table below to calculate the straight-line premium amortization. 2c) 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. Complete this question by entering your answers in the tabs below. nces 2Ato 20 Req 1 Req Req 3 Req 4 Req 5 For each semiannual period, complete the table below to calculate the cash payment, straight-line premium amortization and bond interest expense. (Round "Unamortized Premium" to whole dollar and use the rounded value for part 4 & 5.) Semiannual cash interest payment Par (maturity) value Annual Rate Year Straight-line premium Par (maturity value) Premium on Semiannual periods Bond price amortization Bonds Payable Bond interest Semiannual cash Premium amortization expens payment Req 3
