On January 1, 2018, the Modine Road Corporation issued $500,000 par value, B%, 5-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1, 2018. The market rate of interest on the date of the bond issue was 10%. The company's fiscal year ends on December 31 (Click the icon to view the Future Value of $1 table.) (Click the icon to view the Future Value of an Ordinary Annuity table) (Click the icon to view the Future Value of an Annuity Due table) Click the icon to view the Present Value of $1 table) Click the icon to view the Present Value of an ordinary Annuity table) Click the icon to view the Present Value of an Annuity Due table) Read the requirements Requirement a. Determine the issue price of the debt (Use the present value and future value tables, a financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXOOX. Round your final answers to the nearest whole dollar.) The issue price of the debt is $ Requirement b. Prepare the amortization table for the bond issue through January 1, 2021, assuming that Modine Road uses the effective interest rate method of amortization (Round each calculation to the nearest whole number and then use the rounded value for each subsequent calculation in the table.) Cash Effective Discount/Premium Amortization Carrying Value Date Interest Interest January 1, 2018 July 1, 2018 January 1, 2019 July 1, 2019 January 1, 2020 July 1, 2020 January 1, 2021 Requirement c. Prepare the journal entries to record the bond issue, the first interest entry, and payment of the bonds at maturity. Assume the company uses a premium or discount account if needed. (Round your answers to the nearest whole dollar Record debits first, then credits. Exclude explanations from hiny journal entries. Check your spelling carefully and do not abbreviate) Begin by recording the issuance of the bonds payable January 1, 2018 Account Record the first semiannual interest payment July 1, 2018 Account July 1, 2018 January 1, 2019 July 1, 2019 January 1, 2020 July 1, 2020 January 1, 2021 Requirement c. Prepare the journal entries to record the bond issue, the first interest entry, and payment of the bonds at maturity premium or discount account if needed. (Round your answers to the nearest whole dollar. Record debits first, then credits Exclud entries. Check your spelling carefully and do not abbreviate) Begin by recording the issuance of the bonds payable. Account January 1, 2018 Record the first semiannual interest payment. st payment. Account July 1, 2018 Prepare the journal entry to record payment of the bonds at maturity. Account January 1, 2023 Enter any number in the edit fields and then continue to the next
