problem 3:
required 1-8
problem 4:
required 1 & 2
Jorunal entry 1 &2
Award: 25.00 points On January 1, 2021, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Cash Effective Incmase in Outstanding Payment Payment interest Balance Balance 5.802315 1 332,000 348,139 16,139 5,818,454 2 332.000 349.10? 17.107 5.835561 3 332,000 350,134 18,134 5,853,695 4 332.000 351,222 19,222 5,872,917 5 332,000 352,3?5 20,375 5,893,292 6 332.000 353.598 21.598 5.914.890 38 332,000 4?1,3?T 139,3 TI 7.995.654 39 332.000 \"9.139 147.7 39 8.143.393 40 332,000 488,607 156.6 07 8.300000 Requ t red : 1. What is the face amount of the bonds? 2. What is the initial selling price of the bonds? 3. What is the term to maturity in years? 4. interest is determined by what approach? 5. What is the stated an nuai interest rate? 6. What is the effective annual interest rate? 7. What is the total cash interest paid over the term to maturity? 8. What is the total effective interest expense recorded over the term to maturity? Face amount Initial selling price Term to maturity Interest is determined by what approach? 55. lAnnual tnterest rate '6. Effective annual interest rate i7. Total cash interest paid 8-. Effective interest expense References Worksheet Dttculty: 3 Hard Learning Objective. 14-02 ALCCURI {or bonds issued at face value. at a discount. or at a premium. recording interest using the effective interest metned or using the straight-line method. > a II] all Metro by T-Mobile 8:42 PM 1 0 AA a ezto.mheducation.com connect cancel print 4. Award: 25.00 points The long-term liability section of Twin Digital Corporation's balance sheet as of December 31, 2020, included 10% bonds having a face amount of $50 million and a remaining discount of $1 million. Disclosure notes indicate the bonds were issued to yield 12%. Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. On July 1, 2021, Twin Digital retired the bonds at 103 ($51.5 million) before their scheduled maturity. Required: 1. & 2. Prepare the necessary journal entries by Twin Digital on July 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet 2 Record the semiannual interest. Note: Enter debits before credits, Date General Journal Debit Credit July 01, 2021 Record entry Clear entry View general journal References General Journal Difficulty: 1 Easy Learning Objective: 14-05 Record the early extinguishment of debt, its conversion into equity securities, and bond issues with warrants.
