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Please make corrections. The Gorman Group issued $910,000 of 13% bonds on June 30, 2018, for $978,459. The bonds were dated on June 30 and
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The Gorman Group issued $910,000 of 13% bonds on June 30, 2018, for $978,459. The bonds were dated on June 30 and mature on June 30, 2038 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually on December 31 and June 30. Required: Complete the below table to record the company's journal entry. 1. to 3. Prepare the journal entry to record their issuance by The Gorman Group on June 30, 2018, interest on December 31, 2018 and interest on June 30, 2019 (at the effective rate). Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Calculation Req 1 to 3 Complete the below table to record the company's journal entry. (Round intermediate calculations and final answers to the nearest whole dollar. Enter interest rate to 1 decimal place. (i.e. 0.123 should be entered as 12.3).) Total December 31, 2018 Amount Interest Rate 967,707 X Interest expense 6.0% 58,062 900,000 X Cash 6.5% $ 58,500 Amortization of premium on bonds 438 Total June 30, 2019 Amount Interest Rate 967,269 X Interest expense 6.0% 58,036 X = 900,000 X $ Cash 6.5% 58,500 464 Amortization of premium on bonds $ Calculation Req 1 to 3 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Calculation Req 1 to 3 EPrepare the journal entry to record their issuance by The Gorman Group on June 30, 2018, interest on December 31, 2018 and interest on June 30, 2019 (at the effective rate). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.) No Date General Journal Debit Credit June 30, 2018 967,707 1 Cash Bonds payable 900,000X Premium on bonds payable 67,707x December 31, 201 Interest expense 58,062 2 438 X Premium on bonds payable 58,500 Cash Interest expense 58,036( 3 June 30, 2019 Premium on bonds payable 464 Cash 58,500 Req 1 to 3> KCalculation
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