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Johnny's Hamburgers issued 8%. 10-year bonds payable at 95 on December 31, 2018 At December 31, 2020, Johnny Johnny's pays semiannual interest each June 30
Johnny's Hamburgers issued 8%. 10-year bonds payable at 95 on December 31, 2018 At December 31, 2020, Johnny Johnny's pays semiannual interest each June 30 and December 31. (Assume bonds payable are amortized using the reported the bonds payable as follows: straight-line amortization method.) BE (Click the icon to view the bonds payable.) Read the requirements *** Requirement 1. Answer the following questions about Johnny's bonds payable: a. What is the maturity value of the bonds? b What is the carrying amount of the bonds at December 31, 2020? c. What is the semiannual cash interest payment on the bonds? d. How much interest expense should the company record each year? Requirement 2. Record the June 30, 2020, semiannual Interest payment and amortization of discount. (Record delvils first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit 2020 - X Data table Jun 30 Long-term Liabilities Bonds Payable Less: Discount on Bonds Payable S 100,000 (4,000) $ 96.000 Print Done
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