Reporting Financial Statement Effects of Bond Transactions On January 1, 2019, Shields, Inc., issued $800,000 of 9%, 20-year bonds for $879,172, yielding a market (yield) rate of 8%. Semiannual interest is payable on June 30 and December 31 of each year. a. Show computations to confirm the bond issue price. Round answers to the nearest whole number. Present value of principal repayments Present value of interest payments Selling price of bonds 5 b. Prepare journal entries to record the bond issuance, semiannual interest payment and premium amortization on June 30, 2019, and semiannual interest payment and premium amortization on December 31, 2019. Use the effective interest rate method. Round answers to the nearest whole number. General Journal Date Description Debit Credit 1/1/19 Bonds payable 6/30/19 Interest expense 12/31/19 Interest expense + c. Post the journal entries from part b to their respective T-accounts. Note: Enter your answers using the appropriate row (by transaction date). Cash Bond Payable 01/01 01/01 06/30 06/30 12/31 12/31 Bond Premium Interest Expense 01/01 01/01 06/30 12/31 06/30 12/31 d. Record each of the transactions from part b in the financial statement effects template. Use rounded answers from above. When applicable, enter the total amount for liabilities. Balance Sheet Transaction Cash Asset + Noncash Assets = Liabilities + Contr. Capital + Earned Capital 1/1/19: Issue bonds s $ S 6/30/19: Interest payment on bonds 12/31/19: Interest payment on bonds Revenue Income Statement Expenses = Net income S $ s