IE 09-02 (Static) Using Excel to Calculate and Prepare the Adjusting Journal Entries related to the Issuance of Bonds [LO 9-5] On January 1, 2024, a company issues bonds. Details of the bond issue are provided below. Face amount Stated rate (annual) Number of years until maturity $2,000,000.00 7% 10 8% Market rate (annual) Interest is paid semiannually on June 30 and December 31 of each year. Required: 1. Use an Excel formula to calculate the issue price of the bonds. 2. Complete the first four rows of the amortization schedule. 3. Prepare the journal entry for issuance of the bonds. 4. Prepare the journal entry for the first interest payment on June 30, 2024. 5. Prepare the journal entry for the second interest payment on December 31, 2024, 1. Use the Open Excel in New Tab button to launch this question. 2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect. A B C D 2 On January 1, 2024, a company issues bonds. Details of the bond issue are provided below. E G H 3 4 Face amount 5 Stated rate (annual) 6 Number of years until maturity 7 Market rate (annual) 8 $2,000,000.00 7% 10 8% 9 Interest is paid semiannually on June 30 and December 31 of each year. 10 11 Required: 12 1. Use an Excel formula to calculate the issue price of the bonds. 13 2. Complete the first four rows of the amortization schedule. 14 3. Prepare the journal entry for issuance of the bonds. 15 4. Prepare the journal entry for the first interest payment on June 30, 2024. 16 5. Prepare the journal entry for the second interest payment on December 31, 2024. 17 18 Requirement 1: Issue Price of the Bonds 19 20 (Use cells A2 to B7 from the given information above to complete this question. Hint: Use the PV function to calculate the issue price. In your formula, be sure to use cell references to the given information (cells B4 to B7). Since interest is paid semiannually, multiply or divide by a factor of 2 in your formula as appropriate. Show the issue price as a positive amount by including a negative symbol ("-") before the PV function.) 21 Issue price of the bonds: 22 23 Requirement 2: Amortization Schedule 24 (Use cells A2 to B7 from the given information above to complete this question. All values should be B C D E 23 Requirement 2: Amortization Schedule 24 (Use cells A2 to B7 from the given information above to complete this question. All values should be shown as positive amounts.) 25 25 26 27 28 June 30, 2024 Interest Change in Date Cash Paid Expense Carrying Value Carrying Value 29 December 31, 2024 30 June 30, 2025 F G 31 December 31, 2025 32 33 Requirement 3: Journal Entry for Issuance of Bonds on January 1, 2024 34 (Use cells A2 to B7 from the given information above to complete this question. Hint: A "discount" or "premium" account will auto-populate based on your answer to Requirement 1. Show all values as positive amounts.) 35 36 Account 37 Discount on Bonds Payable 38 Cash 39 Bonds Payable 40 Debit $2,000,000.00 Credit 41 Requirement 4: Journal Entry for First Interest Payment on June 30, 2024 42 43 (Use cells A2 to B7 from the given information above to complete this question. Hint: A "discount" or "premium" account will auto-populate based on your answers to Requirements 1 and 2. Show all values as positive amounts.) 39 27 40 Bonds Payable A 41 Requirement 4: Journal Entry for First Interest Payment on June 30, 2024 42 43 44 D E F G (Use cells A2 to B7 from the given information above to complete this question. Hint: A "discount" or "premium" account will auto-populate based on your answers to Requirements 1 and 2. Show all values as positive amounts.) Account Debit Credit 45 Interest Expense 46 Cash 47 Discount on Bonds Payable 48 $0.00 49 Requirement 5: Journal Entry for Second Interest Payment on December 31, 2024 50 50 51 (Use cells A2 to B7 from the given information above to complete this question. Hint: A "discount" or "premium" account will auto-populate based on your answers to Requirements 1 and 2. Show all values as positive amounts.) 52 Account 53 Interest Expense 54 Cash 55 Discount on Bonds Payable 555 56 57 Debit Credit 0.00