i need help please!!
Gomez issues $240,000 of 6%4-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31 . They are issued at $198,494 when the market rate is 8%. Ripkin Company issues 9%, fiveyear bonds dated January 1, 2021, with a $320,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $332,988. Their annual market rate is 8% on the issue date. Instructions: 1. Make all of the journal entries and post to the T-accounts for the life of the bonds 2. Show the carrying value of the bonds each year Bonds issued at a Premium - Controct interest rote 3 Market interest rate - Investors can get a better rote with our bonds than in the market, so we chorge them more. - The compony (borrower) gets more money now than they have to poy back at maturity. 22 Bonds Payable (face value) 23 Annual interest rate 24 Annual interest expense: 25.1/2 year 26 Semi-anmual interest payment $02 paid over 5 years in 10 payments 27 28 29 Selling price of bonds 30 Less: Face value of bonds Face less than selling price 31 Premium on Bonds Payable $0 32. Divided by number of interest payments 33 Premium to amortize per period T.Accounts 37 38=01/01/21 Cash 38 39 Premium on Bonds Payable V a Ony Your account yahr. patelistudonts. mece edu doesat allew edting on a Mac. To leam mere, contact yeur admin about your Micresott jes plan. 4 if x in 06/30/25 Bond interest Expense Premium on bonds Payable Cash Record semi-annual interest expense 12/31/25 Bond Interest Expense Preentum on Bonds Payable Cash Hecord sem-antual Interest expense 1/1/26 Bonds Payabie cash Par bond peinopal at maturity Gomez issues $240,000 of 6%4-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31 . They are issued at $198,494 when the market rate is 8%. Ripkin Company issues 9%, fiveyear bonds dated January 1, 2021, with a $320,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $332,988. Their annual market rate is 8% on the issue date. Instructions: 1. Make all of the journal entries and post to the T-accounts for the life of the bonds 2. Show the carrying value of the bonds each year Bonds issued at a Premium - Controct interest rote 3 Market interest rate - Investors can get a better rote with our bonds than in the market, so we chorge them more. - The compony (borrower) gets more money now than they have to poy back at maturity. 22 Bonds Payable (face value) 23 Annual interest rate 24 Annual interest expense: 25.1/2 year 26 Semi-anmual interest payment $02 paid over 5 years in 10 payments 27 28 29 Selling price of bonds 30 Less: Face value of bonds Face less than selling price 31 Premium on Bonds Payable $0 32. Divided by number of interest payments 33 Premium to amortize per period T.Accounts 37 38=01/01/21 Cash 38 39 Premium on Bonds Payable V a Ony Your account yahr. patelistudonts. mece edu doesat allew edting on a Mac. To leam mere, contact yeur admin about your Micresott jes plan. 4 if x in 06/30/25 Bond interest Expense Premium on bonds Payable Cash Record semi-annual interest expense 12/31/25 Bond Interest Expense Preentum on Bonds Payable Cash Hecord sem-antual Interest expense 1/1/26 Bonds Payabie cash Par bond peinopal at maturity
