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Question Content Area Bond discount, entries for bonds payable transactions On July 1 , 2 0 Y 1 , Livingston Corporation, a wholesaler of manufacturing
Question Content Area Bond discount, entries for bonds payable transactions On July Y Livingston Corporation, a wholesaler of manufacturing equipment, issued $ of year, bonds at a market effective interest rate of receiving cash of $ Interest on the bonds is payable semiannually on December and June The fiscal year of the company is the calendar year. Required: For all journal entries, if an amount box does not require an entry, leave it blank. Question Content Area Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July Y DateAccountDebitCredit Y July Cash Discount on Bonds Payable Bonds Payable Question Content Area Journalize the entries to record the following: a The first semiannual interest payment on December Y and the amortization of the bond discount, using the straightline method. Round to the nearest dollar. DateAccountDebitCredit Y Dec. Interest Expense Discount on Bonds Payable Cash Question Content Area b The interest payment on June Y and the amortization of the bond discount, using the straightline method. Round to the nearest dollar. DateAccountDebitCredit Y June Interest Expense Discount on Bonds Payable Cash Question Content Area Determine the total interest expense for Y Round to the nearest dollar. fill in the blank of $ Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest? Yes Compute the price of $ received for the bonds by using the Present value at compound interest, and Present value of an annuity. Round your PV values to decimal places and the final answers to the nearest dollar. Your total may vary slightly from the price given due to rounding differences. Line Item Description Price Present value of the face amount fill in the blank of $ Present value of the semiannual interest payments fill in the blank of Proceeds of bond issue fill in the blank of $
Question Content Area
Bond discount, entries for bonds payable transactions
On July Y Livingston Corporation, a wholesaler of manufacturing equipment, issued $ of year, bonds at a market effective interest rate of receiving cash of $ Interest on the bonds is payable semiannually on December and June The fiscal year of the company is the calendar year.
Required:
For all journal entries, if an amount box does not require an entry, leave it blank.
Question Content Area
Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July Y
DateAccountDebitCredit
Y July
Cash
Discount on Bonds Payable
Bonds Payable
Question Content Area
Journalize the entries to record the following:
a The first semiannual interest payment on December Y and the amortization of the bond discount, using the straightline method. Round to the nearest dollar.
DateAccountDebitCredit
Y Dec.
Interest Expense
Discount on Bonds Payable
Cash
Question Content Area
b The interest payment on June Y and the amortization of the bond discount, using the straightline method. Round to the nearest dollar.
DateAccountDebitCredit
Y June
Interest Expense
Discount on Bonds Payable
Cash
Question Content Area
Determine the total interest expense for Y Round to the nearest dollar.
fill in the blank of $
Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest?
Yes
Compute the price of $ received for the bonds by using the Present value at compound interest, and Present value of an annuity. Round your PV values to decimal places and the final answers to the nearest dollar. Your total may vary slightly from the price given due to rounding differences.
Line Item Description Price
Present value of the face amount fill in the blank of $
Present value of the semiannual interest payments fill in the blank of
Proceeds of bond issue fill in the blank of $
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