Required Information Problem 7-31 (Algo) Bonds payable-calculate issue price and amortize discount LO 8 (The following information applies to the questions displayed below] On January 1, 2019, Drennen Inc. issued $4.6 million face amount of 5-year, 10% stated rate bonds when market interest rates were 8%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2023 Table 6-4. Table 6-5 (Use appropriate factor from the table provided.) Problem 7-31 (Algo) Part a Required: a. Calculate the proceeds (issue price) of Drennen Inc.'s bonds on January 1, 2019, assuming that the bonds were sold to provide a market rate of return to the investor. (Round PV factor to 4 decimal places.) Proceeds Required information Problem 7-31 (Algo) Bonds payable-calculate issue price and amortize discount LO 8 The following information applies to the questions displayed below On January 1, 2019. Drennen Inc. issued $4.6 million face amount of 5-year, 10% stated rate bonds when market keres rates were 8% The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 202 Table 6-4 Table 6-5 (Use appropriate factor from the table provided.) Problem 7-31 (Algo) Part b - Horizontal model b-1. Assume instead that the proceeds were $4,559,000. Use the horizontal model to record the payment of semiannuel interest and the related discount amortization on June 30, 2019, assuming that the discount of $41,000 is amortized on a straight-line basis indicate the financial statement effect (Enter decreases with a minus sign to indicate a negative financial statement effect) Assets Balance Sheet Liabilities Shuckbuhley Emily at income Expenses Required Information Problem 7-31 (Algo) Bonds payable-calculate issue price and amortize discount LO 8 [The following information applies to the questions displayed below] On January 1, 2019, Drennen Inc. issued $4.6 million face amount of 5-year, 10% stated rate bonds when market interest rates were 8%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2023, Table 6-4, Table 6-5 (Use appropriate factor from the table provided.) Problem 7-31 (Algo) Part b - Journal entry b-2. Assume instead that the proceeds were $4,559,000. Record the journal entry to show the payment of semiannual interest and the related discount amortization on June 30, 2019, assuming that the discount of $41,000 is amortized on a straight-line basis. (If no entry Is required for a transaction/event, select "No Journal entry required" In the first account field.) View transaction list Journal entry worksheet Record the semiannual cash payment and amortization of discount. Note: Enter debits before credits Event General Journal Debit Credit