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Record bond transactions (at par); report bonds payable on the balance sheet) The board of directors of Radio Plus authorizes the issue of $7,000,000 of
Record bond transactions (at par); report bonds payable on the balance sheet) The board of directors of Radio Plus authorizes the issue of $7,000,000 of 9%, 25-year bonds payable. The semiannual interest dates are May 31 and November 30. The bonds are issued on May 31, 2012, at par. Journalize the following transactions: Issuance of half of the bonds on May 31, 2012 Payment of interest on November 30, 2012 Accrual of interest on December 31, 2012 Payment of interest on May 31, 2013 k1. Report interest payable and bonds payable as they would appear on the Radio Plus balance sheet at December 31, 2012. P97oA, Learning objectives 1, 2, 5: Issue bonds at a discount: amortize by the straight-line method report bonds payable and accrued interest on the balance sheet) On February 28, 2012, Dolphin Corp. issues 6%, 10-year bonds payable with a face value of $900,000. The bonds pay interest on February 28 and August 31.Dolphin Corp. amortizes bonds by the straight-line method. If the market interest rate is 5% when Dolphin Corp. issues its bonds, will the bonds be priced at par, at a premium, or at a discount? Explain. If the market interest rate is 7% when Dolphin Corp. issues its bonds, will priced at par at a premium, or at a discount? Explain. Assume that the issue price of the bonds is 96. Journalize the following bonds payable
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