The annual accounting period ends December 31. The bonds were issued at 104 on January 1, 2021, when the market interest rate was 8 percent. Assume the company uses straight-line 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 journal 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 nt December 31, 2021 and 2022. Answer is not complete Complete this question by entering your answers in the tabs below. Req 1 Reg 2 and 3 Req 4A Reg 4B Prepare the journal entry to record the issuance of the bonds and the payment of interest on December 31, 2021 and 2022. Ir no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) No Date General Journal Debat Credit January 01, 2021 Cash Bonds Payable 520.000 Premium on Bonds Payable 1 OOO 2 December 31, 202 interest Expense Premium on Bonds Payable Cash OOO OO 3 December 31, 202 Interest Expense Peruum on Bonds Payable Cash Face value: $520.000 Interest: 9 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 percent. Assume the company uses straight-line 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 journal entry to record the issuance of the bonds and the payment of interest on December 31, 2021 and 2022 4-0. How much interest expense would be reported on the income statements for 2021 and 2022? 4-6. 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. Regl Reg 2 and 3 Reg Reg 40 Prepare the journal entry to record the issuance of the bonds and the payment of interest on December 31, 2021 and 2022. Ir no entry is required for a transaction/event, select "No Joumal Entry Required in the first account field.) View transaction list View journal entry worksheet No General Journal Debit Credit Date January 01 2021 1 Cash 520.000 Bonds Payable Premium on Bonds Payable 2 2 December 31 2021 Interest Expense Premium on Bonds Payable Cash 3 December 31 2022 Interest Expense Pemum on Bands Payable Cash
