Problem 10-1A Straight-Line: Amortization of bond discount LO P2

Topic: Click here to ask chapturstplated queste Ch 10: Homework Ch 10: Homework Saved Help Save & Exit Submit Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion Return to question Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments. points & Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 Req 2A to 2C Reg 3 Reg 4 Reg 5 Prepare the first two years of a straight-line amortization table. Semiannual Period-End 01/01/2019 06/30/2019 12/31/2019 06/30/2020 12/31/2020 Unamortized Discount $ 163,065 157,630 152,195 146,730 / 141,295 $ Carrying Value $ 1,036,935 1,042,370 1,047,805 1,053,240 1,058,675 40 ror each semiannual period, complete the table below to calculate the straight-line discount amortization 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 Req 2A to 20 Reg 3 Req 4 Req 5 For each semiannual period, compute (a) the cash payment, (b) the straight-line discount amortization, and (c) the bond interest expense 2(a) Annual Rate Year Par (maturity) value $ 1,200,000 Semiannual cash interest payment $ 48,000 x 8% x 6/12 = 2(b) Bonds price Par (maturity) value 1,200,000 Discount on Bonds Payable $ 163,065 Semiannual periods 30 Straight-line discount amortization $ 5,435 - $ 1,036,935 = + = 2(c) Semiannual cash payment 48,000 Discount amortization $ 5,435 Bond interest expense $ 53,435 + =