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Required information [The following information applies to the questions displayed below.] Legacy issues $750,000 of 8.0%, four-year bonds dated January 1, 2017, that pay interest
Required information [The following information applies to the questions displayed below.] Legacy issues $750,000 of 8.0%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $656,844 and their market rate is 12% at the issue date. 2. Determine the total bond interest expense to be recognized over the bonds' life. $ 240,000 Total bond interest expense over life of bonds: Amount repaid: 8 payments of 30,000 $ Par value at maturity Total repaid Less amount borrowed Total bond interest expense $ 240,000 240,000 Required information [The following information applies to the questions displayed below.] Legacy issues $750,000 of 8.0%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $656,844 and their market rate is 12% at the issue date. 3. Prepare a straight-line amortization table for the bonds' first two years. Carrying Value Semiannual Period- Unamortized End Discount 01/01/2017 06/30/2017 12/31/2017 06/30/2018 12/31/2018 Required information [The following information applies to the questions displayed below.] Legacy issues $750,000 of 8.0%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $656,844 and their market rate is 12% at the issue date. 4. Prepare the journal entries to record the first two interest payments. View transaction list Journal entry worksheet Record the interest payment and amortization on June 30, 2017. Note: Enter debits before credits. Date General Journal Debit Credit Jun 30, 2017 Record entry Clear entry View general journal Required information (The following information applies to the questions displayed below.) Legacy issues $750,000 of 8.0%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $656,844 and their market rate is 12% at the issue date. 4. Prepare the journal entries to record the first two interest payments. View transaction list Journal entry worksheet Record the interest payment and amortization on December 31, 2017. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2017 Record entry Clear entry View general journal
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