Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help!! Bond Discount, Entries for Bonds Payable Transactions On July 1, 2041, Livingston Corporation, a wholesaler of manufacturing equipment, issued $2,300,000 of 6-year, 9%

please help!!
image text in transcribed
image text in transcribed
Bond Discount, Entries for Bonds Payable Transactions On July 1, 2041, Livingston Corporation, a wholesaler of manufacturing equipment, issued $2,300,000 of 6-year, 9% bonds at a market (effective interest rate of 11%, receiving cash of $2,101.771. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: For all journal entries, if an amount box does not require an entry leave it blank. 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1. 2041 Cash 2.101,771 Discount on Bonds Payable 198,229 Bonds Payable 1.300.000 2. Journalize the entries to record the following a The first semnal interest payment on December 31, 2011. and the motion of the bond the root one method. Round to the nearest of Interest Expense Discount on and Payable Cash b. The interest payment on June 30, 20Y2, and the amortization of the band discount, using the straight-line method. Round to the nearest dollar Interest Expense Discount on Bonds Payable Cash 3. Determine the total interest expense for 201. Round to the nearest dollar, 4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate or interest? Yes 5. Compute the price of 32,101.771 received for the bonds by using the present value tables in Appendix A. Round your TV values to 5 decimal places and the final answers to the nearest dollar. Your total may vary slightly from the price given due to rounding differences. Present value of the face amount Present value of the semiannual interest payments Price received for the bonds

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting What the Numbers Mean

Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,

9th Edition

978-0073527062

Students also viewed these Accounting questions

Question

What do you mean by dual mode operation?

Answered: 1 week ago

Question

Explain the difference between `==` and `===` in JavaScript.

Answered: 1 week ago