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On December 31, 2018, when the market interest rate is 10%, Kennedy Realty issues $300,000 of 11.25%, 10-year bonds payable. The bonds pay interest semiannually.
On December 31, 2018, when the market interest rate is 10%, Kennedy Realty issues $300,000 of 11.25%, 10-year bonds payable. The bonds pay interest semiannually. Kennedy Realty received $323,396 in cash at issuance. Requirements 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar.) 2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments. Requirement 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar.) Interest Carrying Amount Cash Paid Expense Amortized 12/31/2018 06/30/2019 12/31/2019 Requirement 2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments. (Record debits first, then credits. Select Choose from any list or enter any number in the input fields and then continue to the next question. Requirement 2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments. (Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest whole dollar.) Start by journalizing the issuance of the bonds on December 31, 2018. Date Accounts and Explanation Debit Credit 2018 Dec. 31 Choose from any list or enter any number in the input fields and then continue to the next question. Journalize the payment of the first semiannual interest amount and amortization of the bond on June 30, 2019. Date Accounts and Explanation Debit Credit 2019 Jun. 30 Choose from any list or enter any number in the input fields and then continue to the next question. Journalize the payment of the second semiannual interest amount and amortization of the bond on December 31, 2019. jea Accounts and Explanation Debit Credit 2019 Dec. 31 TTTTTTTTTTTTTTTTTT
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