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Problem 14-8 Bonds: effective interest: partial period interest; financial statement effects (L014-2) The fiscal year ends December 31 for Lake Hamilton Development. To provide funding
Problem 14-8 Bonds: effective interest: partial period interest; financial statement effects (L014-2) The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its Moonlight Bay project. LHD issued 7 bonds with a face amount of $540,000 on November 1, 2018 The bonds sold for $486,560, a price to yield the market rate of 8%. The bonds mature October 31, 2038 20 years). Interest is paid semiannually on April 30 and October 31 and is determined using the effective interest method. Required: 1. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31 2018? 2. What amounts related to the bonds will LHD report in its balance sheet at December 31 2018? 3. What amount of Interest expense related to the bonds will LHD report in its income statement for the year ending December 31 20199 4. What amountis) related to the bonds will LHD report in its balance sheet at December 31, 2019 For all requirements. Do not round your intermediate calculation. Enter your answer in whole dollars.) Interest expense Bonds payable interest payable 3. Interest expense 4. Bonds payable interest payable Problem 14-8 Bonds: effective interest: partial period interest: financial statement effects (L014-2] The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its Moonlight Bey project, LHD issued 7% bonds with a face amount of $540.000 on November 1, 2018 The bonds sold for $486,560, a price to yield the market rate of 8. The bonds mature October 31, 2038 20 years. Interest is paid semiannually on April 30 and October 31 and is determined using the effective interest method Required: 1. What amount of interest expense related to the bonds will UHD reportin its income statement for the year ending December 31, 20182 2. What amounts related to the bonds will LHD report in its balance sheet at December 31, 2018? 3. What amount of interes expense related to the bonds will LHD report in its income statement for the year ending December 31. 2019? 4. What amounts related to the bonds will LHD report in its besance sheet at December 31, 2019 For all requirements, Do not found your intermediate calculation. Enter your answer in whole dollars interest expense Bonds payable Interest payabies Interest expense Bonds payable interest payable 4
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