Homework - Chapter 14 1. EX. 14-01.ALGO Effect of Financing on Earnings per Share 2. EX.14-06.BLANKSHEET.AL... Domanico Co., which produces and sells biking equipment, is financed as follows: 3. EX.14-07.ALGO Bonds payable, 10% (issued at face amount) Preferred $2 stock, $20 par $900,000 900,000 4. EX.14-08.BLANKSHEET.AL... Common stock, $25 par 900,000 5. EX.14-09.ALGO Income tax is estimated at 40% of income. 6. EX.14-23.BLANKSHEET.AL... Determine the earnings per share on common stock, assuming that the income before bond interest and income tax is (a) $270,000, (b) $360,000, and (c) $450,000. 7. EX.14-24 8. PR. 14-03A.BLANKSHEET Enter answers in dollars and cents, rounding to two decimal places. 9. PR. 14-04A.BLANKSHEET a. Earnings per share on common stock $ 1.64 X b. Earnings per share on common stock $ c. Earnings per share on common stock $ Feedback Check My Work Remember to take interest, income tax and dividends into consideration. Check My Work Next > Progress: 1/9 items Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading Homework - Chapter 14 Entries for issuing bonds and amortizing discount by straight-line method Instructions Chart of Accounts Journal Final Questions Instructions On January 1, the first day of its fiscal year, Chin Company issued $25,100,000 of five-year, 5% bonds to finance its operatio payable semiannually. The bonds were issued at a market (effective) interest rate of 7%, resulting in Chin Company receiving Required: A. Journalize the entries to record the following (refer to the Chart of Accounts for exact wording of account titles): 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount amortization, using the straight-line method, is combined n payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount amortization, using the straight-line method, is combine interest payment. (Round your answer to the nearest dollar.) B. Determine the amount of the bond interest expense for the first year. C. Explain why the company was able to issue the bonds for only $23,012,565 rather than for the face amount of $25,1 Check My Work Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading Homework - Chapter 14 Entries for issuing bonds and amortizing discount by straight-line method Instructions Chart of Accounts Journal Final Questions Final Questions B. Determine the amount of the bond interest expense for the first year. C. Explain why the company was able to issue the bonds for only $23,012,565 rather than for the face amount of $25,100,00 The bonds sell for less than their face amount because the market rate of interest is rate of interest. Investors the full face amount for bonds that pay a lower contract rate of interest than the rate they could earn on similar bonds (marke Check My Work Previous Next Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading Homework - Chapter 14 1. EX. 14-01.ALGO Entries for Issuing Bonds and Amortizing Premium by Straight- Line Method 2. EX. 14-06.BLANKSHEET.AL... 3. EX. 14-07.ALGO Daan Corporation wholesales repair products to equipment manufacturers. On April 1, 2016, Daan Corporation issued $2,900,000 of 5-year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $3,014,734. Interest is payable semiannually on April 1 and October 1. 4. EX.14-08.BLANKSHEET.AL... 5. EX.14-09.ALGO 6. EX.14-23.BLANKSHEET.AL... a. Journalize the entry to record the issuance of bonds on April 1, 2016. For a compound transaction, if an amount box does not require an entry, leave it blank. 7. EX.14-24 8. PR. 14-03A.BLANKSHEET 9. PR. 14-04A.BLANKSHEET b. Journalize the entry to record the first interest payment on October 1, 2016, and amortization of bond premium for six months, using the straight-line method. The bond premium amortization is combined with the semiannual interest payment (Round to the nearest dollar.) For a compound transaction, if an amount box does not require an entry, leave it blank. c. Why was the company able to issue the bonds for $3,014,734 rather than for the face amount of $2,900,000? the contract The market rate of interest is rate of interest. Check My Work Progress: 3/9 items Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading Homework - Chapter 14 1. EX.14-01.ALGO Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $1,886,000 of 20-year, 12% callable bonds on May 1, 20Y1, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. 2. EX. 14-06.BLANKSHEET.AL... 3. EX. 14-07.ALGO Journalize the entries to record the following selected transactions: 4. EX.14-08.BLANKSHEET.AL... 20Y1 5. EX. 14-09.ALGO May 1 Issued the bonds for cash at their face amount. 6. EX.14-23.BLANKSHEET.AL... Nov. 1 Paid the interest on the bonds. 2015 7. EX. 14-24 Nov. 1 Called the bond issue at 98, the rate provided in the bond (Omit entry for payment of interest.) 8. PR. 14-03A.BLANKSHEET Issued the bonds for cash at their face amount. 9. PR. 14-04A.BLANKSHEET 20Y1, May 1 Accounts Payable Bonds Payable Paid the i Cash 20Y1, No Gain on Redemption of Bonds Interest Expense Loss on Redemption of Bonds Called the rovided in the bond indenture. (Omit entry for payment of interest.) For a compound transaction, if an amount box does not require an entry, leave it blank. 20Y5, Nov. 1 Check My Work Previous Next Progress: 5/9 items Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading Homework - Chapter 14 1. EX.14-01.ALGO Amortize Premium by Interest Method 2. EX.14-06.BLANKSHEET.AL... 3. EX. 14-07.ALGO Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Year 1, Shunda Corporation issued $22,000,000 of five-year, 9% bonds at a market (effective) interest rate of 7%, receiving cash of $23,829,684. Interest is payable semiannually. Shunda Corporation's fiscal year begins on January 1. The company uses the interest method. 4. EX.14-08.BLANKSHEET.AL... 5. EX.14-09.ALGO 6. EX. 14-23.BLANKSHEET.AL... a. Journalize the entries to record the following: 7. EX. 14-24 1. Sale of the bonds. Round amounts to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. 8. PR.14-03A.BLANKSHEET 9. PR. 14-04A.BLANKSHEET 2. First semiannual interest payment, including amortization of premium. Round to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. 3. Second semiannual interest payment, including amortization of premium. Round to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Check My Work Previous Next Progress: 7/9 items Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading Homework - Chapter 14 1. EX.14-01.ALGO Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $1,886,000 of 20-year, 12% callable bonds on May 1, 2011, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. 2. EX. 14-06.BLANKSHEET.AL... 3. EX.14-07.ALGO Journalize the entries to record the following selected transactions: 4. EX.14-08.BLANKSHEET.AL... 20Y1 5. EX.14-09.ALGO May 1 Issued the bonds for cash at their face amount. 6. EX. 14-23.BLANKSHEET.AL... Nov. 1 Paid the interest on the bonds. 2015 7. EX.14-24 Nov. 1 Called the bond issue at 98, the rate provided in the bond (Omit entry for payment of interest.) 8. PR. 14-03A.BLANKSHEET Issued the bonds for cash at their face amount 9. PR. 14-04A.BLANKSHEET 20Y1, May Paid the interest on the bonds. 20Y1, Nov. 1 Called the bond issue at 98, the rate provided in the bond indenture. (Omit entry for payment of interest.) For a compound transaction, if an amount box does not require an entry, leave it blank. 20Y5, Nov. 1 Check My Work Previous Next Progress: 5/9 items Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading Homework - Chapter 14 1. EX. 14-01. ALGO Amortize Premium by Interest Method 2. EX. 14-06.BLANKSHEET.AL... 3. EX. 14-07.ALGO Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Year 1, Shunda Corporation issued $22,000,000 of five-year, 9% bonds at a market (effective) interest rate of 7%, receiving cash of $23,829,684. Interest is payable semiannually. Shunda Corporation's fiscal year begins on January 1. The company uses the interest method. 4. EX.14-08.BLANKSHEET. AL... 5. EX. 14-09.ALGO 6. EX. 14-23.BLANKSHEET.AL... a. Journalize the entries to record the following: 7. EX. 14-24 1. Sale of the bonds. Round amounts to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. 8. PR. 14-03A.BLANKSHEET 9. PR. 14-04A.BLANKSHEET . Bonds Payable Cash Discount on Bonds Payable It payment, including amortization of Interest Expense rest dollar. For a compound Interest Payable bx does not require an entry, leave it Premium on Bonds Payable 3. Second semiannual interest payment, including amortization of premium. Round to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Check My Work Progress: 7/9 items Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading 1. EX. 14-01.ALGO Effect of Financing on Earnings per Share 2. EX 14-06.BLANKSHEETAL... Domanico Co., which produces and sells biking equipment, is financed as follows: 3. EX. 14-07 ALGO EX 14-08.BLANKSHEETAL.. Bonds payable, 10% (issued at face amount) Preferred $2 stock, $20 par Common stock, $25 par Income tax is estimated at 40% of income. $900,000 900,000 900,000 - EX. 14-09.ALGO EX.14-23.BLANKSHEET.AL... EX. 14-24 Determine the earnings per share on common stock, assuming that the income before bond interest and income tax is (a) $270,000, (b) $360,000, and (c) $450,000. PR. 14-03A.BLANKSHEET Enter answers in dollars and cents, rounding to two decimal places PR. 14-04A.BLANKSHEET a. Earnings per share on common stock $ 1.64 X b. Earnings per share on common stock s c. Earnings per share on common stock s Check My Work Remember to take interest, income tax and dividends into consideration $: 1/9 items Check My Work Next t Score: 0.0% Email Instructor Save and Exit Submit Assignment for Gr 73 PM 5/9 items pre: 0.0% Email Instructor Submit Assignment for Gradin Save and Exit ark - Chapter 14 1.ALGO Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $1,886,000 of 20-year, 12% callable bonds on May 1, 2011, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. 16.BLANKSHEETAL.. 7ALGO Journalize the entries to record the following selected transactions: 3.BLANKSHEET.AL... 2011 ALGO May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. BLANKSHEETAL... 2015 Nov. 1 Called the bond issue at 98, the rate provided in the bond (Omit entry for payment of interest.) ABLANKSHEET Issued the bonds for cash at their face amount. A.BLANKSHEET 20Y1, May Paid the interest on the bonds. 20Y1, Nov. 1 Called the bond issue at 98, the rate provided in the bond indenture. (Omit entry for payment of interest.) For a compound transaction, if an amount box does not require an entry, leave it blank. 20Y5, Nov. 1 Previous Next > Check My Work tems Email Instructor Some And Exit Submit Assignment for Grau Amortize Premium by Interest Method SHEETAL... Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Year 1, Shunda Corporation issued $22,000,000 of five-year, 9% bonds at a market (effective) interest rate of 7%, receiving cash of $23,829,684. Interest is payable semiannually. Shunda Corporation's fiscal year begins on January 1. The company uses the interest method. SHEETAL... SHEETAL... a. Journalize the entries to record the following: 1. Sale of the bonds. Round amounts to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. KSHEET SHEET 2. First semiannual interest payment, including amortization of premium. Round to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. 3. Second semiannual interest payment, including amortization of premium. Round to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Drauiue Next apter 4 Amortize Premium by Interest Method KSHEETAL... Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Year 1, Shunda Corporation issued $22,000,000 of five-year, 9% bonds at a market (effective) interest rate of 7%, receiving cash of $23,829,684. Interest is payable semiannually. Shunda Corporation's fiscal year begins on January 1. The company uses the interest method. KSHEET.AL... IKSHEET.AL... a. Journalize the entries to record the following: 1. Sale of the bonds. Round amounts to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. NKSHEET NKSHEET Bonds Payable Cash Discount on Bonds Payable Interest Expense payment, including amortization of rest dollar. For a compound x does not require an entry, leave it Interest Payable Premium on Bonds Payable 3. Second semiannual interest payment, including amortization of premium. Round to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Progress: 1/9 items Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading Homework - Chapter 14 Entries for issuing bonds and amortizing discount by straight-line method Instructions Chart of Accounts Journal Final Questions Instructions On January 1, the first day of its fiscal year, Chin Company issued $25,100,000 of five-year, 5% bonds to finance its operatio payable semiannually. The bonds were issued at a market (effective) interest rate of 7%, resulting in Chin Company receiving Required: A. Journalize the entries to record the following (refer to the Chart of Accounts for exact wording of account titles): 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount amortization, using the straight-line method, is combined n payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount amortization, using the straight-line method, is combine interest payment. (Round your answer to the nearest dollar.) B. Determine the amount of the bond interest expense for the first year. C. Explain why the company was able to issue the bonds for only $23,012,565 rather than for the face amount of $25,1 Check My Work Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading Homework - Chapter 14 Entries for issuing bonds and amortizing discount by straight-line method Instructions Chart of Accounts Journal Final Questions Final Questions B. Determine the amount of the bond interest expense for the first year. C. Explain why the company was able to issue the bonds for only $23,012,565 rather than for the face amount of $25,100,00 The bonds sell for less than their face amount because the market rate of interest is rate of interest. Investors the full face amount for bonds that pay a lower contract rate of interest than the rate they could earn on similar bonds (marke Check My Work Previous Next Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading Homework - Chapter 14 1. EX. 14-01.ALGO Entries for Issuing Bonds and Amortizing Premium by Straight- Line Method 2. EX. 14-06.BLANKSHEET.AL... 3. EX. 14-07.ALGO Daan Corporation wholesales repair products to equipment manufacturers. On April 1, 2016, Daan Corporation issued $2,900,000 of 5-year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $3,014,734. Interest is payable semiannually on April 1 and October 1. 4. EX.14-08.BLANKSHEET.AL... 5. EX.14-09.ALGO 6. EX.14-23.BLANKSHEET.AL... a. Journalize the entry to record the issuance of bonds on April 1, 2016. For a compound transaction, if an amount box does not require an entry, leave it blank. 7. EX.14-24 8. PR. 14-03A.BLANKSHEET 9. PR. 14-04A.BLANKSHEET b. Journalize the entry to record the first interest payment on October 1, 2016, and amortization of bond premium for six months, using the straight-line method. The bond premium amortization is combined with the semiannual interest payment (Round to the nearest dollar.) For a compound transaction, if an amount box does not require an entry, leave it blank. c. Why was the company able to issue the bonds for $3,014,734 rather than for the face amount of $2,900,000? the contract The market rate of interest is rate of interest. Check My Work Progress: 3/9 items Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading Homework - Chapter 14 1. EX.14-01.ALGO Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $1,886,000 of 20-year, 12% callable bonds on May 1, 20Y1, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. 2. EX. 14-06.BLANKSHEET.AL... 3. EX. 14-07.ALGO Journalize the entries to record the following selected transactions: 4. EX.14-08.BLANKSHEET.AL... 20Y1 5. EX. 14-09.ALGO May 1 Issued the bonds for cash at their face amount. 6. EX.14-23.BLANKSHEET.AL... Nov. 1 Paid the interest on the bonds. 2015 7. EX. 14-24 Nov. 1 Called the bond issue at 98, the rate provided in the bond (Omit entry for payment of interest.) 8. PR. 14-03A.BLANKSHEET Issued the bonds for cash at their face amount. 9. PR. 14-04A.BLANKSHEET 20Y1, May 1 Accounts Payable Bonds Payable Paid the i Cash 20Y1, No Gain on Redemption of Bonds Interest Expense Loss on Redemption of Bonds Called the rovided in the bond indenture. (Omit entry for payment of interest.) For a compound transaction, if an amount box does not require an entry, leave it blank. 20Y5, Nov. 1 Check My Work Previous Next Progress: 5/9 items Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading Homework - Chapter 14 1. EX.14-01.ALGO Amortize Premium by Interest Method 2. EX.14-06.BLANKSHEET.AL... 3. EX. 14-07.ALGO Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Year 1, Shunda Corporation issued $22,000,000 of five-year, 9% bonds at a market (effective) interest rate of 7%, receiving cash of $23,829,684. Interest is payable semiannually. Shunda Corporation's fiscal year begins on January 1. The company uses the interest method. 4. EX.14-08.BLANKSHEET.AL... 5. EX.14-09.ALGO 6. EX. 14-23.BLANKSHEET.AL... a. Journalize the entries to record the following: 7. EX. 14-24 1. Sale of the bonds. Round amounts to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. 8. PR.14-03A.BLANKSHEET 9. PR. 14-04A.BLANKSHEET 2. First semiannual interest payment, including amortization of premium. Round to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. 3. Second semiannual interest payment, including amortization of premium. Round to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Check My Work Previous Next Progress: 7/9 items Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading Homework - Chapter 14 1. EX.14-01.ALGO Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $1,886,000 of 20-year, 12% callable bonds on May 1, 2011, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. 2. EX. 14-06.BLANKSHEET.AL... 3. EX.14-07.ALGO Journalize the entries to record the following selected transactions: 4. EX.14-08.BLANKSHEET.AL... 20Y1 5. EX.14-09.ALGO May 1 Issued the bonds for cash at their face amount. 6. EX. 14-23.BLANKSHEET.AL... Nov. 1 Paid the interest on the bonds. 2015 7. EX.14-24 Nov. 1 Called the bond issue at 98, the rate provided in the bond (Omit entry for payment of interest.) 8. PR. 14-03A.BLANKSHEET Issued the bonds for cash at their face amount 9. PR. 14-04A.BLANKSHEET 20Y1, May Paid the interest on the bonds. 20Y1, Nov. 1 Called the bond issue at 98, the rate provided in the bond indenture. (Omit entry for payment of interest.) For a compound transaction, if an amount box does not require an entry, leave it blank. 20Y5, Nov. 1 Check My Work Previous Next Progress: 5/9 items Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading Homework - Chapter 14 1. EX. 14-01. ALGO Amortize Premium by Interest Method 2. EX. 14-06.BLANKSHEET.AL... 3. EX. 14-07.ALGO Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Year 1, Shunda Corporation issued $22,000,000 of five-year, 9% bonds at a market (effective) interest rate of 7%, receiving cash of $23,829,684. Interest is payable semiannually. Shunda Corporation's fiscal year begins on January 1. The company uses the interest method. 4. EX.14-08.BLANKSHEET. AL... 5. EX. 14-09.ALGO 6. EX. 14-23.BLANKSHEET.AL... a. Journalize the entries to record the following: 7. EX. 14-24 1. Sale of the bonds. Round amounts to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. 8. PR. 14-03A.BLANKSHEET 9. PR. 14-04A.BLANKSHEET . Bonds Payable Cash Discount on Bonds Payable It payment, including amortization of Interest Expense rest dollar. For a compound Interest Payable bx does not require an entry, leave it Premium on Bonds Payable 3. Second semiannual interest payment, including amortization of premium. Round to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Check My Work Progress: 7/9 items Assignment Score: 0.0% Email Instructor Save and Exit Submit Assignment for Grading 1. EX. 14-01.ALGO Effect of Financing on Earnings per Share 2. EX 14-06.BLANKSHEETAL... Domanico Co., which produces and sells biking equipment, is financed as follows: 3. EX. 14-07 ALGO EX 14-08.BLANKSHEETAL.. Bonds payable, 10% (issued at face amount) Preferred $2 stock, $20 par Common stock, $25 par Income tax is estimated at 40% of income. $900,000 900,000 900,000 - EX. 14-09.ALGO EX.14-23.BLANKSHEET.AL... EX. 14-24 Determine the earnings per share on common stock, assuming that the income before bond interest and income tax is (a) $270,000, (b) $360,000, and (c) $450,000. PR. 14-03A.BLANKSHEET Enter answers in dollars and cents, rounding to two decimal places PR. 14-04A.BLANKSHEET a. Earnings per share on common stock $ 1.64 X b. Earnings per share on common stock s c. Earnings per share on common stock s Check My Work Remember to take interest, income tax and dividends into consideration $: 1/9 items Check My Work Next t Score: 0.0% Email Instructor Save and Exit Submit Assignment for Gr 73 PM 5/9 items pre: 0.0% Email Instructor Submit Assignment for Gradin Save and Exit ark - Chapter 14 1.ALGO Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp. issued $1,886,000 of 20-year, 12% callable bonds on May 1, 2011, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. 16.BLANKSHEETAL.. 7ALGO Journalize the entries to record the following selected transactions: 3.BLANKSHEET.AL... 2011 ALGO May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. BLANKSHEETAL... 2015 Nov. 1 Called the bond issue at 98, the rate provided in the bond (Omit entry for payment of interest.) ABLANKSHEET Issued the bonds for cash at their face amount. A.BLANKSHEET 20Y1, May Paid the interest on the bonds. 20Y1, Nov. 1 Called the bond issue at 98, the rate provided in the bond indenture. (Omit entry for payment of interest.) For a compound transaction, if an amount box does not require an entry, leave it blank. 20Y5, Nov. 1 Previous Next > Check My Work tems Email Instructor Some And Exit Submit Assignment for Grau Amortize Premium by Interest Method SHEETAL... Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Year 1, Shunda Corporation issued $22,000,000 of five-year, 9% bonds at a market (effective) interest rate of 7%, receiving cash of $23,829,684. Interest is payable semiannually. Shunda Corporation's fiscal year begins on January 1. The company uses the interest method. SHEETAL... SHEETAL... a. Journalize the entries to record the following: 1. Sale of the bonds. Round amounts to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. KSHEET SHEET 2. First semiannual interest payment, including amortization of premium. Round to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. 3. Second semiannual interest payment, including amortization of premium. Round to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Drauiue Next apter 4 Amortize Premium by Interest Method KSHEETAL... Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Year 1, Shunda Corporation issued $22,000,000 of five-year, 9% bonds at a market (effective) interest rate of 7%, receiving cash of $23,829,684. Interest is payable semiannually. Shunda Corporation's fiscal year begins on January 1. The company uses the interest method. KSHEET.AL... IKSHEET.AL... a. Journalize the entries to record the following: 1. Sale of the bonds. Round amounts to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. NKSHEET NKSHEET Bonds Payable Cash Discount on Bonds Payable Interest Expense payment, including amortization of rest dollar. For a compound x does not require an entry, leave it Interest Payable Premium on Bonds Payable 3. Second semiannual interest payment, including amortization of premium. Round to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank.