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On December 31, 2018, when the market interest rate is 14%, Lee Realty issues $300,000 of 15.25%, 10-year bonds payable. The bonds pay interest semiannually.
On December 31, 2018, when the market interest rate is 14%, Lee Realty issues $300,000 of 15.25%, 10-year bonds payable. The bonds pay interest semiannually. Lee Realty received $319,738 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 Expense Discount Amortized Carrying Amount Cash Paid 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 explanations on the last line of 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 Cash Discount on Bonds Payable Bonds Payable Choose from any list or enter any number in the input fields and then continue to the next question. On December 31, 2018, when the market interest rate is 14%, Lee Realty issues $300,000 of 15.25%, 10-year bonds payable. The bonds pay interest semiannually. Lee Realty received $319,738 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. Start by journalizing the issuance of the bonds on December 31, 2018. Date Accounts and Explanation Debit Credit 2018 Dec. 31 Cash Discount on Bonds Payable Bonds Payable 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 Interest Expense Discount on Bonds Payable Cash Choose from any list or enter any number in the input fields and then continue to the next question. On December 31, 2018, when the market interest rate is 14%, Lee Realty issues $300,000 of 15.25%, 10-year bonds payable. The bonds pay interest semiannually. Lee Realty received $319,738 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. Date Accounts and Explanation Debit Credit 2019 Jun. 30 Interest Expense Discount on Bonds Payable Cash Journalize the payment of the second semiannual interest amount and amortization of the bond on December 31, 2019. Date Accounts and Explanation Debit Credit 2019 Dec. 31 Interest Expense Discount on Bonds Payable Cash Choose from any list or enter any number in the input fields and then continue to the next
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