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Tarawa Limited issued $1.280,000 of 10 year, 5% bonds on January 1, 2018, when the market interest rate was 6%. Tarawa received $1,184.789 when the
Tarawa Limited issued $1.280,000 of 10 year, 5% bonds on January 1, 2018, when the market interest rate was 6%. Tarawa received $1,184.789 when the bonds were issued. Interest is payable semi- annually on July 1 and January 1. Tarawa has a December 31 year end. Record the issue of the bonds on January 1. (Credit Account titles are automatically indented when the amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Jan. 1 Credit Bank Loan Payable List of Accounts Record the payment of interest on July 1. Round answers to decimal places, s. 5.275. Credit account titles are automatically indented when the amount is entered. Do not indent manual) Date Account Titles and Explanation Debit Credit July 1 Record the payment of interest on July 1. (Round answers to decimal places, s. 5.275. Credit account titles are automatically indented when the amount is entered. Do not indent manually Date Account Titles and Explanation Debit Credit July 1 List of Accounts Record the accrual of interest on December 31. (Round answers to decimal places.es 5.275. Credit account titles are automatically indented when the amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit Dec 31 Prove the amount of cash received when the bonds were sold by determining the bonds present value issue price on January 1, 2018. Prove the carrying amount of the bonds, one year later, by determining the present value of the bonds at that time. (Round answers to decimal places es 5.2750 Bonds present value issue price on January 1, 2018 5 Present value of the bonds
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