Print 1. On December 31, 2018, when the market interest rate is 8%, Biggs Realty issues $450,000 of 5.25%, 10-year bonds payable. The bonds pay interest semiannually. The present value of the bonds at issuance is $365,732 Requirements 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual Interest periods. (Round to the nearest dollar.) 2. Using the arrortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments. Requirement 1. Prepare an amortization table using the effective interest amortization method for the first two serniannual interest periods. (Round to the nearest dollar) Interest Expense Carrying Amount Cash Paid Amortized 12/31/2018 06/30/2019 12/31/2019 Requirement 2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments. (Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest whole dollar.) Start by journalizing the issuance of the bonds on December 31, 2018. Date Accounts and Explanation Debit Credit 2018 Dec. 31 Joumalize the payment of the first semiannual interest arount and amortization of the bond on June 30, 2019 Date Accounts and Explanation Debit Credit 2019 Jun. 30 Joumalize the payment of the second semiannual interest amount and amortization of the bond on December 31, 2019 Print Date Accounts and Explanation Debit Credit 2019 Dec. 31 (12) (1) O Discount O Premium Interest Expense O Premium on Bonds Payable O Interest Expense O Premium on Bonds Payable (2) O Bonds Payable O Cash Discount on Bonds Payable (3) O O Bonds Payable O Cash Discount on Bonds Payable Interest Expense O Premium on Bonds Payable Interest Expense O Premium on Bonds Payable Bands Payable O Cash O Discount on Bonds Payable (5) O Bonds Payable O Cash Discount on Bonds Payable (6) O O Paid semiannual interest and amortized discount. O Paid semiannual interest and amortized premium. Retired bonds payable at maturity. O Interest Expense O Premium on Bonds Payable Issued bonds at a discount. Issued bonds at a premium. Issued bonds at face value. (7) O O Bonds Payable Cash O Discount on Bonds Payable Interest Expense O Premium on Bonds Payable Interest Expense O Premium on Bonds Payable Interest Expense O Premium on Bonds Payable (8) O O Bonds Payable Cash O Discount on Bonds Payable (9) O O Bonds Payable Cash O Discount on Bonds Payable (10) O O Bonds Payable O Cash Discount on Bonds Payable (11) O O Paid semiannual interest and arnortized discount O Paid semiannual interest and amortized premium. O Retired bonds payable at maturity. Interest Expense O Premium on Bonds Payable Issued bonds at a discount. Issued bonds at face value. Issued bands at a premium. (12) O O Bonds Payable O Cash Discount on Bonds Payable (11) O Issued bonds at a discount. Issued bonds at face value. Issued bonds at a premium. O Paid semiannual interest and amortized discount. O Paid semiannual interest and amortized premium. O Retired bonds payable at maturity. Interest Expense O Premium on Bonds Payable (12) O Bonds Payable O Cash Discount on Bonds Payable (13) O O Interest Expense O Premium on Bonds Payable Interest Expense O Premium on Bonds Payable Interest Expense O Premium on Bonds Payable Bonds Payable Cash Discount on Bonds Payable (14) O O Bonds Payable O Cash O Discount on Bonds Payable (15) O O Bonds Payable O Cash Discount on Bonds Payable (16) O Issued bonds at a discount. Issued bonds at face value. Issued bonds at a premium. O Paid semiannual interest and amortized discount. O Paid semiannual interest and amortized premium. O Retired bonds payable at maturity
