Question
Please help, need assistance on the last piece d. and part 2 ? P14-31AAnalyzing, journalizing, and reporting bond transactionsBilly's Hamburgers issued 5%, 10-year bonds payable
Please help, need assistance on the last piece d. and
part 2
?P14-31AAnalyzing, journalizing, and reporting bond transactionsBilly's Hamburgers issued 5%, 10-year bonds payable at 90 on December 31, 2012. At December 31, 2014, Billy reported the bonds payable as follows:Long-term Liabilities:Bonds Payable$ 400,000Less: Discount on Bonds Payable 32,000$ 368,000Billy pays semiannual interest each June 30 and December 31.Learning Objective 8 Appendix 14B2. Interest Expense DR $6,676Learning Objectives 1, 51. Mar. 1, 2015 Interest Expense DR $1,4622. Total Liabilities $492,443Learning Objectives 2, 32. Discount CR $2,000>ISBN 1-269-32781-XHorngren's Accounting, The Financial Chapters, Tenth Edition, by Tracie Nobles, Brenda Mattison, and Ella Mae Matsumura. Published by Prentice Hall. Copyright © 2014 by Pearson Education, Inc. Requirements1.Answer the following questions about Billy's bonds payable:a.What is the maturity value of the bonds?b.What is the carrying amount of the bonds at December 31, 2014?c.What is the semiannual cash interest payment on the bonds?d.How much interest expense should the company record each year?2.Record the June 30, 2014, semiannual interest payment and amortization ofdiscount.
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