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Spa, Inc. is authorized to issue 7%, 10-year bonds payable. On January 1, 2018, when the market interest rate is 12%, the company issues $400,000
Spa, Inc. is authorized to issue 7%, 10-year bonds payable. On January 1, 2018, when the market interest rate is 12%, the company issues $400,000 of the bands. The bonds pay interest Hemiannually. (Click the icon to view Present Value of $1 table.) Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) Click the icon to view Future Value of Ordinary Annuity of $1 table.) Read the ints. Requirement 1. How much did the company receive o n e of the body Round the nearest Upono v Requirement 2. Prepare an an ion for the bonding the newest the f i rst payments (Round to the nearest dollar mation Expose Amated Amount Cash Pad 01.01.2018 300 5 123019 Requirement 3. Journalize the issuance of the bonds on January 1, 2018, and the first and second payments of the semiannual interest amount and amortization of the bands on June 30, 2018 and December 31, 2018. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) Journalize the issuance of the bonds. Date Accounts Debit Credit 2018 Jan 1 Cash Discount on Bonds Payable Bonds Payable Journalize the payment of the first semiannual interest amount and amortization of the bond on June 30, 2018. Data Accounts Debit Credit 2018 Jun 30 || Interest Expense Discount on Bonds Payable Cash Journalize the payment of the second semiannual interest amount and amortization of the bond on December 31, 2018 Date Accounts Debit Credit 2018 Dec. 31 Interest Expense Discount on Bonds Payable Cash This question is complete. Move your cursor over or tap on the red arrows to see incorrect answers
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