Long-term Liabilities Determine bonds payable amounts with a discount; amortize bonds using the straight-line method On July 1, 2018, Starlight Drive-Ins Ltd. borrowed money by issuing bonds payable with characteristics given below. The bonds pay interest each January 1 and July 1 Bonds payable issued Maturity (years) Stated interest rate Issue price $ 5,000,000 10 7% 95.50 Use the blue shaded areas on the ENTERANSWERS tab for inputs Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you wil be marked wrong Requirements 1 How much cash did Starlight receive when it issued the bonds payable? Journalize this transaction a. Check your spelling carefully and do not abbreviate D. Record debits first, then credits. Exclude explanations from journal entries C.Use cell references from prior calculations, if applicable 2 How much must Starlight pay back at maturity? When is the maturity date? a. Enter al amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted b. Enter any dates using the following format: MM/DD/YY. For example, 1/1/17 C.Use cell references from prior calculations, if applicable 3 How much cash interest will Starlight pay each six months? a. Enter al amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted D. Use cell references from prior calculations, if applicable 4 How much interest expense will Starlight report each six months? Use the straight-line amortization method Journalize the entries for the accrual of interest and amortization of discount on December 31, 2018, and the payment of interest on January 1, 2019 a. Check your spelling carefully and do not abbreviate b. Enter al amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted C. Record debits first, then credits, Exclude explanations from journal entries d Use cell references from prior calculations, if applicable 1. How much cash did Starlight receive when it issued the bonds payable? Journalize this transaction. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong. Use cell references from prior calculations, if applicable.) Face amount of bonds Issue price Proceeds Discount on bonds payable Debit Date 01/07/18 Accounts Credit 2. How much must Starlight pay back at maturity? When is the maturity date? (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong. Use cell references from prior calculations, if applicable.) Amount to pay back at maturity Maturity date 3. How much cash interest will Starlight pay each six months? Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong. Use cell references from prior caculations, if applicable.) Interest payment 4. How much interest expense will Starlight report each six months? Use the straight-line amortization method. Journalize the (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong. Use cell references from prior calculations, if applicable.) Number of semiannual interest payment periods Straight-line amortization per interest period Interest paid each interest period Total interest expense per each interest period Date 12/31/18 Debit Credit Accounts 01/01/19 Long-term Liabilities Determine bonds payable amounts with a discount; amortize bonds using the straight-line method On July 1, 2018, Starlight Drive-Ins Ltd. borrowed money by issuing bonds payable with characteristics given below. The bonds pay interest each January 1 and July 1 Bonds payable issued Maturity (years) Stated interest rate Issue price $ 5,000,000 10 7% 95.50 Use the blue shaded areas on the ENTERANSWERS tab for inputs Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you wil be marked wrong Requirements 1 How much cash did Starlight receive when it issued the bonds payable? Journalize this transaction a. Check your spelling carefully and do not abbreviate D. Record debits first, then credits. Exclude explanations from journal entries C.Use cell references from prior calculations, if applicable 2 How much must Starlight pay back at maturity? When is the maturity date? a. Enter al amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted b. Enter any dates using the following format: MM/DD/YY. For example, 1/1/17 C.Use cell references from prior calculations, if applicable 3 How much cash interest will Starlight pay each six months? a. Enter al amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted D. Use cell references from prior calculations, if applicable 4 How much interest expense will Starlight report each six months? Use the straight-line amortization method Journalize the entries for the accrual of interest and amortization of discount on December 31, 2018, and the payment of interest on January 1, 2019 a. Check your spelling carefully and do not abbreviate b. Enter al amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted C. Record debits first, then credits, Exclude explanations from journal entries d Use cell references from prior calculations, if applicable 1. How much cash did Starlight receive when it issued the bonds payable? Journalize this transaction. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong. Use cell references from prior calculations, if applicable.) Face amount of bonds Issue price Proceeds Discount on bonds payable Debit Date 01/07/18 Accounts Credit 2. How much must Starlight pay back at maturity? When is the maturity date? (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong. Use cell references from prior calculations, if applicable.) Amount to pay back at maturity Maturity date 3. How much cash interest will Starlight pay each six months? Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong. Use cell references from prior caculations, if applicable.) Interest payment 4. How much interest expense will Starlight report each six months? Use the straight-line amortization method. Journalize the (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong. Use cell references from prior calculations, if applicable.) Number of semiannual interest payment periods Straight-line amortization per interest period Interest paid each interest period Total interest expense per each interest period Date 12/31/18 Debit Credit Accounts 01/01/19
