Southwest Corporation issued bonds with the following details: Face value: $642,000 Interest 9.0 percent per year payable each December 31 Terms: Bonds dated January 1, 2021, due five years from that date The annual accounting period ends December 31. The bonds were issued at 104 on January 1, 2021, when the market interest rate was 8.0 percent. Assume the company uses effective-Interest amortization and adjusts for any rounding errors when recording interest expense in the final year. Required: 1. Compute the cash received from the bond issuance in dollars. TIP. The issue price typically is quoted at a percentage of face value. 2. \& 3. Prepare the joumal entry to record the issuance of the bonds and the payment of interest on December 31,2021 and 2022. 4-a. How much interest expense would be reported on the income statements for 2021 and 2022 ? 4-b. Compute the bond value which should be reported on the balance sheets at December 31, 2021 and 2022 Complete this question by entering your answers in the tabs below. Prepare the journal entry to record the issuance of the bonds and the payment of interest on December 31,2021 an is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers dollar.) The annual accounting period ends December 8.0 percent. Assume the company uses effective-Interest amortization and adjusts for any roundir expense in the final year. Required: 1. Compute the cash received from the bond issuance in dollars. TIP: The issue price typically value. 2. \& 3. Prepare the journal entry to record the issuance of the bonds and the payment of interest 0 4-a. How much interest expense would be reported on the income statements for 2021 and 202 4-b. Compute the bond value which should be reported on the balance sheets at December 31 , Complete this question by entering your answers in the tabs below. How much interest expense would be reported on the income statements for 2021 and 2022 ? (Round y nearest whole dollar.) Ierms: Bonas aated January 1,U1, aue nive years trom that aate The annual accounting period ends December 31. The bonds were issued at 104 on January 1,202 8.0 percent. Assume the company uses effective-Interest amortization and adjusts for any rounding expense in the final year. Required: 1. Compute the cash received from the bond issuance in dollars. TIP: The issue price typically is value. 2. \& 3. Prepare the journal entry to record the issuance of the bonds and the payment of interest on 4-a. How much interest expense would be reported on the income statements for 2021 and 2022 4-b. Compute the bond value which should be reported on the balance sheets at December 31,2 Complete this question by entering your answers in the tabs below. Compute the bond value which should be reported on the balance sheets at December 31,2021 and 202 intermediate calculations and final answers to the nearest whole dollar.)
