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Legacy issues $ 7 1 0 , 0 0 0 of 8 . 0 % , four - year bonds dated January 1 , 2
Legacy issues $ of fouryear bonds dated January that pay interest semiannually on June and December They are issued at $ when the market rate is
Required:
Prepare the January journal entry to record the bonds' issuance.
Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life.
Prepare an effective interest amortization table for the bonds' first two years.
Prepare the journal entries to record the first two interest payments.
Complete this question by entering your answers in the tabs below.
Prepare the January journal entry to record the bonds' issuance.
Journal entry worksheet
Record the issue of bonds with a par value of $ cash on January at an issue price of $
Note: Enter debits before credits.
tableDateGeneral Journal,Debit,CreditJanuary
Required
Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life.
tableTotal bond interest expense over life of bonds:Amount repaid:payments ofTotal repaidLess amount borrowedTotal bond interest expense
Required
Required
Required
Required
Prepare an effective interest amortization table for the bonds' first two years,
Note: Round your intermediate and final answers to the nearest whole dollar.
tabletableSemiannual InterestPeriodEndCash Interest Paid,tableBond InterestExpensetableDiscountAmortizationtableUnamortizedDiscountCarrying Value
Required
Required
Prepare the journal entries to record the first two interest payments.
Record the first interest payment on June
Record the second interest payment on December
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