On July 1, 2017, Global Satellites Corporation issued $1,770,000 of 10-year, 8% bonds to yield a market interest rate of 7%. The bonds pay semi-annual interest on July 1 and January 1. Global has a December 31 year end. When the bonds were issued, Global received $1,895,787 Click here to view the factor table. Part 1 Prepare an amortization table through January 1, 2019 (three interest periods) for this bond issue. (Round all amounts to the nearest dollar, e.g. 5,275.) GLOBAL SATELLITES CORPORATION Bond Premium Amortization Semi-annual interest periods Unamortized Premium Bond Carrying Amount Interest Expense to be Recorded Interest to be paid Premium Amortization July 1/17 $ $ Jan. 1/18 $ $ $ July 1/18 Jan. 1/19 July 1/19 e Textbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit Answer Part 2 Record the issue of the bonds on July 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round all amounts to the nearest dollar, e.g. 5,275.) Date Account Titles and Explanation Debit Credit 2017 July 1 Part 3 Prepare the adjusting entry on December 31, 2018, to accrue the interest on the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round all amounts to the nearest dollar, e.g. 5,272.) Date Account Titles and Explanation Debit Credit 2018 Dec. 31 e Textbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit Answer Part 4 Show the statement of financial position presentation of the liabilities at December 31, 2018. (Round all amounts to the nearest dollar, e.g. 5,275.) GLOBAL SATELLITES CORPORATION Statement of Financial Position (Partial) December 31, 2018 Current liabilities Non-current liabilities e Texthook and Media Part 5 Record the payment of interest on January 1, 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round all amounts to the nearest dollar, e.g. 5,275.) Date Account Titles and Explanation Debit Credit 2019 Jan. 1 e Textbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit Answer Part 6 Prove the issue proceeds of the bonds on July 1, 2017, by calculating the present value of the bonds at that time. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answer to the nearest dollar, e.g. 5,275.) The bonds' present value (issue price) $ e Textbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit
