Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please answer the questions I got wrong. On July 1, 20Y1, Livingston Corporation, a wholesaier of manufacturing equipment, issued $46,000,000 of 20 -year, 10% bonds
Please answer the questions I got wrong.
On July 1, 20Y1, Livingston Corporation, a wholesaier of manufacturing equipment, issued $46,000,000 of 20 -year, 10% bonds at a maeket (effective) interest rate of 11 Th, receiving cash of 542,309,236. Interest on the bonds is payabie semiannually on December 31 and Jine 30. The fiscal year of the company is the calendar year Requiredt For ali journal entries, if an amount box does not require an entry, leave it blank. 20r Fresteas F creck My wos Bonds Payable is always recarded at face value. Any difference in issue price is reflected in a gremium or discount account: 2. Journailine the entries to record the following: a. The fint semiannuaf interest payment on December 31, 20r1, and the amoctication of the bond discount, using the straight-line method. Round to the nearest doltar. F Check Mi, Wat The stroightiline methed of amortization provides equal amounts of amertization over the life of the bond. b. The interest payment on June 30,20y2, and the amortization of the bond discount, using the straightiline method. Round to the nearest doilar. 202 Jane finakis F ches My mos The straigh-line method of amertiration provides equal amouncs of amoctiation over the le of the bond. 3. Determine the total interest expense for 20Y. 4. Wit the bond proceeds always be less than the face amount of the bonds when the comonct rate is iess than the marset rate of interet? 5. Compute the price of $42,300,236 recelved for the bonds by using the Present value at compound interest, and Present value of an annuity, Round your PV 1 moru Chack My Woks uses remaining Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started