Problem 10-10A On July 1, 2017, Global Satellites Corporation issued $1,650,000 of 10-year, 8% bonds to yield a market interest rate of 7%. The bonds pay semi-annual interest on July 1 and January 1. Global has a December 31 year end. When the bonds were issued, Global received $1,767,259 Click here to view the factor table. Prepare an amortization table through January 1, 2019 (three interest periods) for this bond issue. (Round all amounts to the nearest dollar, e.g. 5,275.) GLOBAL SATELLITES CORPORATION Bond Premium Amortization Semi-annual interest periods Interest to be paid Interest Expense to be Recorded Premium Amortization Unamortized Bond Carrying Premium Amount July 1/17 $ Jan. 1/18 $ $ $ July 1/18 Jan. 1/19 July 1/19 Record the issue of the bonds on July 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round all amounts to the nearest dollar, e.g. 5,275.) Debit Credit Date Account Titles and Explanation 2017 July 1 Prepare the adjusting entry on December 31, 2018, to accrue the interest on the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round all amounts to the nearest dollar, e.a. 5,272.) nearest dollar, e.g. 5,272.) Debit Credit Date Account Titles and Explanation 2018 Dec. 31 Show the statement of financial position presentation of the liabilities at December 31, 2018. (Round all amounts to the nearest dollar, e.g. 5,275.) GLOBAL SATELLITES CORPORATION Statement of Financial Position (Partial) December 31, 2018 Current liabilities $ Non-current liabilities Record the payment of interest on January 1, 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round all amounts to the nearest dollar, e.g. 5,275.) Date Account Titles and Explanation Debit Credit 2019 Jan. 1 Prove the issue proceeds of the bonds on July 1, 2017, by calculating the present value of the bonds at that time. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answer to the nearest dollar, e.g. 5,275.) Show the statement of financial position presentation of the liabilities at December 31, 2018. (Round all amounts to the nearest dollar, e.g. 5,275.) GLOBAL SATELLITES CORPORATION Statement of Financial Position (Partial) December 31, 2018 Current liabilities $ Non-current liabilities Record the payment of interest on January 1, 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round all amounts to the nearest dollar, e.g. 5,275.) Date Account Titles and Explanation Debit Credit 2019 Jan. 1 Prove the issue proceeds of the bonds on July 1, 2017, by calculating the present value of the bonds at that time. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answer to the nearest dollar, e.g. 5,275.) The bonds' present value (issue price) $
