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To expand the operations of the firm, Diamond Corp. issued a 4%, $50,000 bond that pays interest semiannually each June 30 und December 31. The
To expand the operations of the firm, Diamond Corp. issued a 4%, $50,000 bond that pays interest semiannually each June 30 und December 31. The date of issuance was January 1, 2020. The bonds mature after four years. The market interest rate was os Diamond Corp.'s year-end is December 31. (Use a financial calculator where required) Required: Preparation Component: 1. Calculate the issue price of the bond. (Round the final answer to the nearest whole dollar) Issue price of the bond 2. Prepare a general journal entry to record the issuance of the bonds. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) View transaction list worksheet Wiolerm 2 (W22) 2. Prepare a general journal entry to record the issuance of the bonds. (Do not round Intermedia answers to the nearest whole dollar) View transaction ist Journal entry worksheet 1 Record the sale of bonds on original issue date. Note: Enter debits before credits General Journal Debit Credit Date January 01, 2020 3. Determine the total bond interest expense that will be recognized over the life of these bonds. Do not calculations. Round your answer to the nearest whole dollar) Total bond interest expense 14:22 4. Prepare the first two years of an amortization table based on the effective interest method. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter all the amounts as positive values.) Period Ending Cash Interest Paid Parlod Interest Expense Discount Amort. Unamorticed Discount Carrying Value Jan. 1/20 June 30/20 Dec. 31/20 June 30/21 Dec. 31/21
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