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The Gorman Group issued $880,000 ot 13% bonds on June 30, 2018, lor $946,202. The bonds were dated on June 30 and mature on June
The Gorman Group issued $880,000 ot 13% bonds on June 30, 2018, lor $946,202. 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 12%. Interest is paid semiannualy 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 ssuance 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 Req 1 to ulat... 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).) Show lessA Amount Total Interest expense Cash Amortization of premium on b e 30, 2019 Interest expense Cash Amount Total premium on bonds 2. December 31, 2018 Interest expense 16% x $946,202,-$56372 Cash (6.5% x $880,000) = $57,200 3. June 30, 2019 Interest expense 16% '$946,202-$428) Cash (6.5% x $880,000) = $57,200 S56.746 The Gorman Group issued $880,000 of 13% bonds on June 30, 2018, lor $946,202. 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 12%. Interest is paid semiannualy 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 ssuance 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 ulat Req 1 to 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). (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.) Show lessA 1June 30 2018 31, 2018 3June 30 Calculation Rea 1 to 3 2. December 31, 2018 Interest expense 16% x $946,202,-$56,772 Cash (6.5% x $880,000-$57,200 3. June 30, 2019 Interest expense 16% '$946,202-$428) : S56.746 Cash (6.5% x $880,000-$57,200
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