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Southwest Corporation issued bonds with the following details: ES race value $900,000 Interest: 9.5 percent per year payable each December 31 Ternst Bonds dated January

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Southwest Corporation issued bonds with the following details: ES race value $900,000 Interest: 9.5 percent per year payable each December 31 Ternst Bonds dated January 1, 2018, due five years from that date The annual accounting period ends December 31. The bonds were issued at 103 on January 1, 2018, when the market interest rate was 8.5 percent. Assume the company uses effective interest amortization and adjusts for any rounding errors when recording interest expense in the final year vereres Required: 1. Compute the cash received from the bond issuance in dollars. TIP: The issue price typically is quoted to percentage of face value 2.& 3. Prepare the journal entry to record the issuance of the bonds and the payment of interest on December 31, 2018 and 2019 4-a. How much interest expense would be reported on the income statements for 2018 and 2019? 4-6. Compute the bond value should be reported on the balance sheets at December 31, 2018 and 2019, eBook Print Complete this question by entering your answers in the tabs below. References Reg 1 Reg 2 and 3 Reg 4A Reg 4B Compute the cash received from the bond issuance in dollars. TIP: The issue price typically is quoted at a percentage of face value. Band issue Price Hon Roq 2 and 3 > mall O YouTube Maps apter 10 Homework Saved 7. Reg 1 Req 2 and 3 Reg 4A Reg 4B Prepare the journal entry to record the issuance of the bonds and the payment of interest on December 31, 2018 and 20 is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to th dollar.) 78 oints View transaction list eBook Print Journal entry worksheet References 1 2 3 Record the issuance of bonds with a face value of $900,000 at 103. Note: Enter debits before credits General Journal Debit Credit Date January 01. 2018 Journal entry worksheet 1 2 3 Record the interest payment on December 31, 2018. Note: Enter debits before credits General Journal Debit Credit Date December 31. 2018 Record entry Clear entry View general journal Journal entry worksheet ts Complete this question by entering your answers in the tabs below. 2.78 points Reg 1 Reg 2 and 3 Reg 4 Req 4B Compute the bond value which should be reported on the balance sheets at December 31, 2018 and 2019. (Round your intermediate calculations and final answers to the nearest whole dollar.) Book Print SOUTHWEST CORPORATION Balance Sheet (partial) References 2018 2010 Carrying Value

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