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The Gorman Group issued $800,000 of 9% bonds on June 30, 2018, for $879,172. The bonds were dated on June 30 and mature on June
The Gorman Group issued $800,000 of 9% bonds on June 30, 2018, for $879,172. The bonds were dated on June 30 and mature on June 30, 2038 (20 years). The market yield for bonds of similar risk and maturity is 8%. Interest is paid semiannually on December 31 and June 30 Required Complete the below table to record the company's journal entry. 1. to 3. Prepare the journal entry to record their issuance by The Gorman Group on June 30, 2018, interest on December 31, 2018 and interest on June 30, 2019 (at the effective rate). Complete this question by entering your answers in the tabs below alculationReq 1 to 3 Complete the below table to record the company's journal entry. (Round intermediate calculations and final answers to the nearest whole dollar. Enter interest rate to 1 decimal place. (i.e. 0.123 should be entered as 12.3).) Interest Rate mber 31, 2018 Amount Total Interest expense Cash Amortization of premium on bonds Total Amount Interest Rate une 30, 2019 Interest expense Cash Amortization of premium on bonds Calculation Req 1 to 3 > Journal entry worksheet Record the issuance of the bond on June 30, 2018. Note: Enter debits before credits. Debit Credit Date General Journal June 30, 2018 Record entry Clear entry View general jourmal Calculation Req 1 to 3 Journal entry worksheet 2 Record the interest on December 31, 2018 (at the effective rate) Note: Enter debits before credits. General Journal Date Debit Credit December 31 2018 Record entry Clear entry View general jourmal
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