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New Question:

McQueen Corp. issued 8.5% two-year bonds payable with a face amount of $60,000 when the market interest rate was 8.5%. McQueen's fiscal year-end on December 31. The bonds pay interest on January 1 and July 1. Read the requirement. a. Issuance of the bonds payable at par on July 1, 2018 Journal Entry Requirement Date Accounts and Explanations Debit Credit 2018 Jul 1 Accounts Payable Accounts Receivable Bonds Payable Bonds Receivable Cash Interest Expense Interest Payable Interest Receivable Journalize the following transactions for McQueen. Include an explanation for each entry a. Issuance of the bonds payable at par on July 1, 2018 b. Accrual of interest expense on December 31, 2018 c. Payment of cash interest on January 1, 2019 d. Payment of the bonds payable at maturity (give the date) (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Print Done McQueen Corp. issued 8.5% two-year bonds payable with a face amount of $60,000 when the market interest rate was 8.5%. McQueen's fiscal year-end on December 31. The bonds pay interest on January 1 and July 1 Read the requirement a. Issuance of the bonds payable at par on July 1, 2018 Journal Entry Requirement Date Accounts and Explanations Debit Credit 2018 Jul 1 Journalize the following transactions for McQueen. Include an explanation for each entry a. Issuance of the bonds payable at par on July 1, 2018 b. Accrual of interest expense on December 31, 2018 c. Payment of cash interest on January 1, 2019 d. Payment of the bonds payable at maturity (give the date) (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) To accrue interest. To issue bonds at par. To pay annual interest To pay bonds payable at maturity. To pay semiannual interest. Print Done Municipal Bank has $650,000 of 10% debenture bonds outstanding. The bonds were issued at 101 in 2018 and mature in 2038. The bonds have annual interest payments. Read the requirements. Requirement 1. How much cash did Municipal Bank receive when it issued these bonds? Municipal Bank received $ at bond issuance Requirements x 1. How much cash did Municipal Bank receive when it issued these bonds? 2. How much cash in total will Municipal Bank pay the bondholders through the maturity date of the bonds? 3. Calculate the difference between your answers to requirements 1 and 2. This difference represents Municipal Bank's total interest expense over the life of the bonds. 4. Compute Municipal Bank's annual interest expense using the straight-line amortization method. Multiply this amount by 20. Your 20-year total should be the same as your answer to requirement 3. Print Done