Legacy issues $560,000 of 9.0%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $507,831 when the market rate is 12%. Problem 10-4A Part 1 Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. View transaction list Journal entry worksheet Record the issue of bonds with a par value of $560,000 on January 1, 2019 at an issue price of $507,831. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Record entry Clear entry View general journal Required information Problem 10-4A Straight-Line: Amortization of bond discount LO P2 (The following information applies to the questions displayed below. Legacy issues $560,000 of 9.0%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $507,831 when the market rate is 12%. Problem 10-4A Part 2 2. Determine the total bond interest expense to be recognized over the bonds' life. Total bond interest expense over life of bonds: Amount repaid: payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense 0 $ Required information Problem 10-4A Straight-Line: Amortization of bond discount LO P2 (The following information applies to the questions displayed below.) Legacy issues $560,000 of 9.0%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $507,831 when the market rate is 12%. Problem 10-4A Part 3 3. Prepare a straight-line amortization table for the bonds' first two years. Semiannual Period- Unamortized End Discount 01/01/2019 Carrying Value 06/30/2019 12/31/2019 06/30/2020 12/31/2020 Problem 10-4A Straight-Line: Amortization of bond discount LO P2 (The following information applies to the questions displayed below.) Legacy issues $560,000 of 9.0%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $507,831 when the market rate is 12%. Problem 10-4A Part 4 4. Prepare the journal entries to record the first two interest payments. View transaction list Journal entry worksheet 1 2 2 > Record the interest payment and amortization on June 30. Note: Enter debits before credits. Date General Journal Debit Credit June 30 Record entry Clear entry View general journal Problem 10-4A Straight-Line: Amortization of bond discount LO P2 (The following information applies to the questions displayed below.) Legacy issues $560,000 of 9.0%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $507,831 when the market rate is 12%. Problem 10-4A Part 4 4. Prepare the journal entries to record the first two interest payments. View transaction list Journal entry worksheet
