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On January 1 of this year, Victor Corporation sold bonds with a face value of $1,600,000 and a coupon rate of 10 percent. The bonds

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On January 1 of this year, Victor Corporation sold bonds with a face value of $1,600,000 and a coupon rate of 10 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. Victor uses the straight-line amortization method and does not use a premium account. Assume an annual market rate of interest of 8.5 percent. (FV of $1. PV of 51, EVA of $1, and PVA of S1) (Use the appropriate factor(s) from the tables provided. Round your final answers to whole dollars.) Required: 1.& 2. Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year. 3. What bonds payable amount will Victor report on its June 30 balance sheet? Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the issuance of the bonds. Note: Enter debits before credits Debit Credit Date General Journal January 01 E10-23 (Algo) (Chapter Supplement) Recording and Reporting a Bond Issued at a Premium (Straight- Line Amortization without a Premium Account) LO 10-5 On January 1 of this year, Victor Corporation sold bonds with a face value of $1,600,000 and a coupon rate of 10 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. Victor uses the straight-line amortization method and does not use a premium account. Assume an annual market rate of interest of 8.5 percent. (FV of $1. PV of $1. FVA of $1, and PVA of S1) (Use the appropriate factor(s) from the tables provided. Round your final answers to whole dollars.) Required: 1.8 2. Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year. 3. What bonds payable amount will Victor report on its June 30 balance sheet? Complete this question by entering your answers in the tabs below. Reg 1 and 2 Req3 What bonds payable amount will Victor report on its June 30 balance sheet? VICTOR CORPORATION Balance Sheet (Partial) Al June 30 Long term abilities Reg1 and 2

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