Journal All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. DATE 1 2 3 4 5 DESCRIPTION Jul. 1 Cash Discount on Bonds Payable Bonds Payable JOURNAL Score: 37/75 Instructions Shaded cells have feedback. X PAGE 10 ACCOUNTING EQUATION On July 1, 20Y1, Danzer Industries Inc. issued $35,400,000 of 10-year, 10% bonds at a market (effective) interest rate of 12%, receiving cash of $31,339,478. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. LIABILITIES EQUITY POST. REF. DEBIT CREDIT ASSETS 31,339,478.00 4,060,522.00 35,400,000.00 Required: Final Questions Shaded cells have feedback. X 3. Determine the total interest expense for 20Y1. Enter amount as a positive number. $ Points: 0/1 Points: 6.91/14 4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest? Yes 2b. Journalize the entry to record the interest payment on June 30, 2012, and the amortization of the bond discount, using the straight-line method. Refer to the Chart of Accounts for exact wording of account titles. (Round to the nearest dollar.) No How does grading work? 1 2 3 DATE Jun. 30 Interest Expense DESCRIPTION Discount on Bonds Payable Cash JOURNAL Score: 37/37 POST. REF. DEBIT CREDIT 1,973,026.00 203,026.00 1,770,000.00 Points: 0/1 PAGE 10 ACCOUNTING EQUATION 5. Compute the price of $31,339,478 received for the bonds by using the tables shown in Present Value Tables. (Round to the nearest dollar.) ASSETS LIABILITIES EQUITY Present value of the face amount Present value of the semiannual interest payments Price received for the bonds X