Just requirement 5
National Orthopedics Co. issued 7% bonds, dated January 1, with a face amount of $800,000 on January 1, 2021. The bonds mature on December 31, 2024 (4 years). For bonds of similar risk and maturity the market yield was 8%. Interest is paid semiannually on June 30 and December 31. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds at January 1, 2021. 2. Prepare the journal entry to record their issuance by National on January 1, 2021. 3. Prepare an amortization schedule that determines interest at the effective rate each period. 4. Prepare the journal entry to record interest on June 30, 2021 5. Prepare the appropriate journal entries at maturity on December 31, 2024. 3 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare the appropriate journal entries at maturity on December 31, 2024. (If no entry is required for a transaction/event, select journal entry required in the first account field. Round intermediate calculations and final answers to the nearest whole dollar) Complete this question by entering your answers in the tabs below. ok at Required 1 Required 2 Required 3 Required 4 Required 5 ht nces Determine the price of the bonds at January 1, 2021. (Round final answers to the nearest Table values are based on: n = 8 i = 4.0% Cash Flow Amount Present Value Interest $ 28,000 $ 188,516 Principal $ 800,000 584,552 Price of bonds $ 773,068 Required 1 Required 2 5. Prepare the appropriate journal entries at maturity on December 31, 2024. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare the journal entry to record their issuance by National on January 1, 2021. (If no entry is required for a transaction/ "No journal entry required" in the first account field. Round intermediate calculations and final answers to the nearest whole View transaction list View journal entry worksheet NO Debit Credit 1 Date General Journal January 01, 2021 Cash Discount on bonds payable Bonds payable 773,068 26,932 800,000 Required 1 Required 2 Required 3 Required 4 Required 5 Prepare an amortization schedule that determines interest at the effective rate each period. (Round Interm and final answers to the nearest whole dollar.) Semiannual Interest Discount Cash Interest Bond Interest Carrying Value Expense Period-End Amortization 01/01/2021 $ 773,068 06/30/2021 $ 28,000 $ 30,922 $ 2,922 775,990 12/31/2021 28,000 31,039 3,039 779,029 06/30/2022 28.000 31.161 3,161 782,190 12/31/2022 28,000 31,287 3,287 785,477 06/30/2023 28.000 31,419 3,419 788,896 12/31/2023 28.000 31,555 3,555 792,451 06/30/2024 28,000 31,698 3,698 796, 149 12/31/2024 28,000 31.851 3,851 800,000 Total $ 224,000 $ 250,932 $ 26,932 Required 1 Required 2 Required 3 Required 4 Required 5 Prepare the journal entry to record interest on June 30, 2021. (If no entry is required for a transaction/event, select "No jou required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.) Credit View transaction list View journal entry worksheet No Date General Journal 1 June 30, 2021 Interest expense Discount on bonds payable Cash Debit 30,922 2.922 28,000
