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Please Need help with PROBLEM #6 I ATTACHED THE ANSWER OF PROBLEM 1. PLEASE SHOW WORK THANKS!! HERE THE PROBLEM 3 ANSWER!! Problem 6: Go
Please Need help with PROBLEM #6
I ATTACHED THE ANSWER OF PROBLEM 1.
PLEASE SHOW WORK
THANKS!!
HERE THE PROBLEM 3 ANSWER!!
Problem 6: Go back to Problem 3 and using the interest method of bond amortization, journalize the payments of interest on December 31, 2018 and June 30, 2019 Problem 3: Bingo Company sold $6.000,000 worth of 8% semi annually paid, ten-year bonds on July1st, 2018, at a time when the market rate of interest on similar investments was 12%. The bonds pay interest on December 31-and June 30 1. (a) Using the appropriate Present Valu e Table(s), determine the amaunt the bonds should sell for; their present vakze 2. (b) Journalize the necessary entry for the sale of the bonds. 3, (ci Journalize the first interest payment on December 31, 2018 including the dscount (or premium?) amortization assuming the company makes use of the straightine method of bond interest amortization A) Table values: 20 i- 6,00% Cash now Table Value Present Value 0.312 $6,000,000 $1872,000 PVF 11.470 $240,000 $2,752,000 Price of bonds S4,624,800 6. Journal Entry Date Debit redit uly 1,2018 Cash $1,624800 Discounl on issue ol bond $1,375 200 Bond Payable $6,000,000 To record issue of bond at discournt] 8 Date DcbitCredit Doc. 31,2018 Interest Expense S308,760 Discoun o ssue f bond (S1,375,200/20) S68,760 $240,000 (Torecord interest payment and discount amortization)Step by Step Solution
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