Review the following transactions of Laroche $$Communications$,$ Inc.:

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Part $1$

Requirement $1.$ Journalize the transactions of Laroche Communications Inc.$($Record debits$$ first, then credits. Exclude explanations from any journal$$ entries.$)$

January$1,2021$: Issued $ $6$ comma $000$ comma $000$ of $5\%,10-$year bonds payable at $94.$ Interest payment dates are July $1$ and January $1.$

Journal Entry

Date

Accounts

Debit

Credit

$2021$

Jan $1$

Part $2$

July$1,2021$: Paid semiannual interest and amortized bond discount by the$$ straight$-$line method on the $5\%$ bonds payable.

Journal Entry

Date

Accounts

Debit

Credit

$2021$

Jul $1$

Part $3$

December$31,2021$: Accrued semiannual interest expense and amortized bond discount by the$$ straight$-$line method on the $5\%$ bonds payable.

Journal Entry

Date

Accounts

Debit

Credit

$2021$

Dec $31$

Part $4$

January$1,2022$: Paid semiannual interest.

Journal Entry

Date

Accounts

Debit

Credit

$2022$

Jan $1$

Part $5$

January$1,2031$: Paid the $5\%$ bonds at maturity.

Journal Entry

Date

Accounts

Debit

Credit

$2031$

Jan $1$

Part $6$

Requirement $2.$ At December$31,2021,$ after all$$ year$-$end adjustments have been$$ made, determine the carrying amount of Laroche$\text{'}$s bonds$$ payable, net.

At December $31,2021,$ after all year$-$end adjustments, the carrying amount of the bonds payable is

Part $7$

Requirement $3.$ For the six months ended July$1,2021,$ determine the following for Laroche$$: a$.$ Interest expense and b$.$ Cash interest paid. What causes interest expense on the bonds to exceed cash interest$$ paid?

For the six months ended July$1,2021$ determine the$$ following:

a$.$

Interest expense is

Part $8$

b$.$

Cash interest paid is

Part $9$

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.

an$1,2021$

Issued $ $6$ comma $000$ comma $000$ of $5\%,10-$year bonds payable at $94.$ Interest payment dates are July $1$ and January $1.$

Jul$1,2021$

Paid semiannual interest and amortized bond discount by the$$ straight$-$line method on the $5\%$ bonds payable.

Dec$31,2021$

Accrued semiannual interest expense and amortized the bond discount by the$$ straight$-$line method on the $5\%$ bonds payable.

Jan$1,2022$

Paid semiannual interest.

Jan$1,2031$

Paid the $5\%$ bonds at maturity.