Required For each of the following situations, calculate the amount of bond discount or premium, if any: (Do not round your intermediate calculations.) a Gray Co issued 567 000 of 6 percent bonds at 101 12 b Bush, Inc issued $96.000 of 10year 6 percent bonds at 98 12 Oak, Inc issued $172,000 of 20-year, 6 percent bonds at 102 Willow Co issued $161,000 of 15-year, 7 percent bonds at 96 On January 1 Year 1, the Diamond Association issued bonds with a face value of $211.000, a stated rate of interest of 10 percent, and a 10-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 12 percent at the time the bonds were issued. The bonds sold for $187156. Diamond used the effective interest rate method to amortize the bond discount Required o. Determine the amount of the discount on the day of issue. b. Determine the amount of interest expense recognized on December 31, Year 1. c. Determine the carrying value of the bond liability on December 31, Year 1. d. Provide the general Journal entry necessary to record the December 31, Year 1. interest expense. Complete this question by entering your answers in the tabs below. Reg A to ReaD ence a. Determine the amount of the discount on the day of issue. b. Determine the amount of interest expense recognized on December 31, Year 1. (Round your answer to the nearest dollar amount.) c. Determine the carrying value of the bond liability on December 31, Year 1. (Do not round your intermediate calculations Round your answer to the nearest dollar amount.) Show less in Discount b. Interest expense Catyng value $ 5 23,344 22,450 RegD > On January 1, Year 1, the Diamond Association issued bonds with a face value of $211,000, a stated rate of interest of 10 percent, and a 10-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 12 percent at the time the bonds were issued. The bonds sold for $187.156. Diamond used the effective interest rate method to amortize the bond discount. Required a. Determine the amount of the discount on the day of issue. b. Determine the amount of interest expense recognized on December 31, Year 1. c. Determine the carrying value of the bond Hability on December 31, Year 1. d. Provide the general Journal entry necessary to record the December 31. Year 1. Interest expense, Complete this question by entering your answers in the tabs below. Reg A to Reg D ces Provide the general journal entry necessary to record the December 31, Year 1, interest expense. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round your intermediate calculations. Round your answers to the nearest dollar amount.) View transaction list Journal entry worksheet 1 Record the interest expense Note Eiter debts before credits General Journal Date Your 1 Debit Credit
