Review the following transactions of Lamothe Communications, Inc,.:
Review the following transactions of Lamothe Communications, Inc. (Click the icon to view the transactions.) Read the requirements Requirement 1. Journalize the transactions of Lamothe Communications Inc. (Record debits first, then credits. Exclude explanations from any journal entries.) January 1, 2018: issued $3,000,000 of 9%, 10-year bonds payable at 96, Interest payment dates are July 1 and January 1. Journal Entry Date Debit Accounts Credit 2018 Jan 1 July 1, 2018: Paid semiannual interest and amortized bond discount by the straight-line method on the 9% bonds payable Journal Entry Debit Credit Accounts Date 2018 Jul 1 Review the following transactions of Lamothe Communications, Inc. (Click the icon to view the transactions.) Read the requirements December 31, 2018: Accrued semiannual interest expense and amortized bond discount by the straight-line method on the 9% bonds payable. Journal Entry 2018 Date Accounts Debit Credit Dec 31 January 1, 2019: Paid semiannual interest Journal Entry Credit Debit Date Accounts 2019 Jan 1 Review the following transactions of Lamothe Communications, Inc.: (Click the icon to view the transactions.) Read the requirements January 1, 2028: Paid the 9% bonds at maturity Journal Entry Date Accounts Debit Credit 2028 Jan 1 Requirement 2. At December 31, 2018, after all year-end adjustments have been made, determine the carrying amount of Lamothe's bonds payable, net. At December 31, 2018, after all year-end adjustments, the carrying amount of the bonds payable is$ Requirement 3. For the six months ended July 1, 2018, determine the following for Lamothe: a. Interest expense and b. Cash interest paid. What causes interest expense on the bonds to exceed cash interest paid? For the six months ended July 1, 2018 determine the following: a. Interest expense is $ b. Cash interest paid is $ More Info 2018 Issued $3,000,000 of 9%, 10-year bonds payable at 96, Interest payment dates are July 1 and January 1. Paid semiannual interest and amortized bond discount by the straight-line method on the 9% bonds payable. Accrued semiannual interest expense and amortized the bond discount by the straight-line method on the 9% bonds payable. Jan 1 Jul 1 Dec 31 2019 Jan 2028 Jan 1 Paid semiannual interest. 1 Paid the 9% bonds at maturity. Print Done Requirements Journalize the transactions of Lamothe Communications, Inc. At December 31, 2018, after all year-end adjustments have been made, determine the carrying amount of Lamothe's bonds payable, net. For the six months ended July 1, 2018, determine the following for Lamothe: a. Interest expense b. Cash interest paid 1. 2. 3. What causes interest expense on the bonds to exceed cash interest paid? Print Done What causes interest expense on the bonds to exceed cash interest paid? Amortization of the bond discount. Amortization of the bond premium The company does not have enough cash to pay the expense amount. The interest rate is too high
