See all photos + Add to aio 2 % Entries for issuing Bonds Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued $900,000 of 10-yea, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. bonds on May 1 of the current year face value May 1 Issued the bonds for cash at their face amount. Nov. 1. Paid the interest on the bonds. Dec. 31. Recorded accrued interest for two months. Problem #1 Journalive the entries to record the above selected transactions for the current year. May Nov. 1 Dec. 31 See all photos + Add to % a Entries for issuing Bonds and Among by Str uine Method On the first day of its fiscal ye.Chin Company issued $10.000.000 of five ye, 7 bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 89, resulting in Chin receiving cash of $9.594,415. a. Journalte the entire to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar) 3. Second semiannual interest payment. The bond discount is combined with the seminal interest payment. (Round your answer to the nearest dolar) For a compound transaction, amount box does not require an entry leave it bank Round your answers to the nearest dollar Problem #2 b. Determine the amount of the bond interest exper c. Why was the company able to The market rate of interest the bonds for only $9.594.4 than for the ta greater than/ less than Entries for Issuing Bonds and Amorting Premium by straight-Une Method Smiley Corporation wholesales reper products to equipment manufacturers. On Aprt 1 Year 1. Smey $20,811,010. Interest is payable swannually on April 1 and October 1. und 520,000,000 of five-year 946 bonds at a market (effective) interest rate of receiving cash of a. Journalize the entry to record the issuance of bonds on April 1. Ye . For a compound transaction amount box does not require an entry leave it blank 6. Journalire the entry to record the first interest payment on October 1, Year 1. and amortization of bond premum for action of an amount box does not require an entry leave it blank months, using the whetne method (on to the nearest dolar) For a compound Problem #3 c. Why was the company able to issue the bonds for $20,811,010 rather than for the face amount of $20,000,000? The market rate of interestis the contract rate of interest. greater than/ less than
