Problem 10-8AB Effective Interest: Amortization of bond discount LO P1, P5 Legacy issues $630,000 of 9.0%, four-year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31. They are issued at $571,310, and their market rate is 12% at the issue date. points Required: 1. Prepare the January 1, 2018, journal entry to record the bonds' issuance. 2. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 3. Prepare an effective interest amortization table for the bonds' first two years. Prepare the journal entries to record the first two interest payments. eBook Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Required 4 Prepare the January 1, 2018, journal entry to record the bonds' issuance. View transaction list Journal entry worksheet Record the issue of bonds with a par value of $630,000 cash on January 1, 2018 at an issue price of $571,310. Required 1 Required 2 Required 3 Required 4 Prepare the January 1, 2018, journal entry to record the bonds' issuance. points View transaction list Journal entry worksheet eBook Print Record the issue of bonds with a par value of $630,000 cash on January 1, 2018 at an issue price of $571,310. References Note: Enter debits before credits. Date General Journal Debit Credit Jan 01, 2018 Record entry Clear entry View general Journal ......... ..... ................................ .........Begurado... Problem 10-8AB Effective Interest: Amortization of bond discount LO P1, P5 Legacy issues $630,000 of 9.0%, four-year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31. They are issued at $571,310, and their market rate is 12% at the issue date. points Required: 1. Prepare the January 1, 2018, journal entry to record the bonds' issuance. 2. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 3. Prepare an effective interest amortization table for the bonds' first two years. 4. Prepare the journal entries to record the first two interest payments. eBook Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Required 4 Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. Total bond interest expense over life of bonds: Amount repaid: payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense Problem 10-8AB Effective Interest: Amortization of bond discount LO P1, P5 Legacy issues $630,000 of 9.0%, four-year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31. They are issued at $571,310, and their market rate is 12% at the issue date. points Required: 1. Prepare the January 1, 2018, journal entry to record the bonds' issuance. 2. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 3. Prepare an effective interest amortization table for the bonds' first two years. 4. Prepare the journal entries to record the first two interest payments. eBook Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Required 4 Prepare an effective Interest amortization table for the bonds' first two years. Semiannual Interest Period-End 01/01/2018 Cash Interest Paid Bond Interest Expense Discount Amortization Unamortized Discount Carrying Value 06/30/2018 12/31/2018 06/30/2019 12/31/2019 HIVUILT URIME VIILIVLIVUVIM LIIVIT LIV RIVIVUL PRIVIN. View transaction list Journal entry worksheet points Journal entry worksheet points
