Question
Problem 9-4B Record bond issue and related interest (LO9-5) [The following information applies to the questions displayed below.] Viking Voyager specializes in the design and
Problem 9-4B Record bond issue and related interest (LO9-5)
[The following information applies to the questions displayed below.] Viking Voyager specializes in the design and production of replica Viking boats. On January 1, 2021, the company issues $2,700,000 of 9% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.
Problem 9-4B Part 1
Required:
1. If the market interest rate is 9%, the bonds will issue at $2,700,000. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Answer is not complete.
| No | Date | General Journal | Debit | Credit |
|---|---|---|---|---|
| 1 | January 01, 2021 | Cashselected answer correct | not attempted | not attempted |
| Bonds Payableselected answer correct | not attempted | not attempted | ||
| Premium on bonds payableselected answer incorrect | not attempted | not attempted | ||
| 2 | June 30, 2021 | Interest Payableselected answer incorrect | not attempted | not attempted |
| Cashselected answer correct | not attempted | not attempted | ||
| 3 | December 31, 2021 | Interest Payableselected answer incorrect | not attempted | not attempted |
| Bonds Payableselected answer incorrect | not attempted | not attempted | ||
| Premium on bonds payableselected answer incorrect | not attempted | not attempted |
Problem 9-4B Part 2
2. If the market interest rate is 10%, the bonds will issue at $2,531,760. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.)
Answer is not complete.
| No | Date | General Journal | Debit | Credit |
|---|---|---|---|---|
| 1 | January 01, 2021 | Cashselected answer correct | not attempted | not attempted |
| Premium on bonds payableselected answer incorrect | not attempted | not attempted | ||
| Bonds Payableselected answer correct | not attempted | not attempted | ||
| 2 | June 30, 2021 | Interest Expenseselected answer correct | not attempted | not attempted |
| Premium on bonds payableselected answer incorrect | not attempted | not attempted | ||
| Cashselected answer correct | not attempted | not attempted | ||
| 3 | December 31, 2021 | Interest Expenseselected answer correct | not attempted | not attempted |
| Interest Payableselected answer incorrect | not attempted | not attempted |
Problem 9-4B Part 3
3. If the market interest rate is 8%, the bonds will issue at $2,883,469. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.)
Answer is not complete.
| No | Date | General Journal | Debit | Credit |
|---|---|---|---|---|
| 1 | January 01, 2021 | Cashselected answer correct | not attempted | not attempted |
| Bonds Payableselected answer correct | not attempted | not attempted | ||
| Notes Payableselected answer incorrect | not attempted | not attempted | ||
| 2 | June 30, 2021 | Interest Expenseselected answer correct | not attempted | not attempted |
| Bonds Payableselected answer incorrect | not attempted | not attempted | ||
| Cashselected answer correct | not attempted | not attempted | ||
| 3 | December 31, 2021 | Interest Expenseselected answer correct | not attempted | not attempted |
| Bonds Payableselected answer incorrect | not attempted | not attempted | ||
| Cashselected answer correct | not attempted | not attempted |
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