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Problems 1 Saved Help Save & Exit Submit Check my work ! Required information [The following information applies to the questions displayed below.) Legacy issues
Problems 1 Saved Help Save & Exit Submit Check my work ! Required information [The following information applies to the questions displayed below.) Legacy issues $700,000 of 7.5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $643,419 when the market rate is 10%. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. Journal entry worksheet Record the issue of bonds with a par value of $700,000 on January 1, 2021 at an issue price of $643,419. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Record entry Clear entry View general journal 2. Determine 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 3. Prepare a straight-line amortization table for the bonds' first two years. (Round your intermediate and final answers to the nearest whole dollar.) Semiannual Period-End Unamortized Discount Carrying Value 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 Journal entry worksheet Record the interest payment and amortization on December 31. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal
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