View Policies Show Attempt History Current Attempt in Progress On January 1, 2021, Sandhill Ltd. issued bonds with a maturity value of $7,400,000 when the market rate of interest was 4%. The bonds have a coupon contractual) interest rate of 5% and mature on January 1, 2031. Interest on the bonds is payable semi- annually on July 1 and January 1 of each year. The company's year end is December 31. Click here to view the factor table. Present Value of 1 Click here to view the factor table. Present Value of an Annuity of 1 Your answer is correct Calculate the issue price of the bonds. (For calculation purposes, use 5 decimal places as displayed in the factor toble provided. Round final answer to 0 decimal places, c.8.5,275.) Issue Price $ 8004993 eTextbook and Media List of Accounts Prepare a bond amortization schedule from the date of issue up to and including January 1, 2023. (Round answers to decimal places, c.8. 5,275.) SANDHILL LTD. Bond Premium Amortization Table Effective Interest Method-Semi-Annual Interest Payments 5% Bonds Issued at market rate of 4% Interest Expense Premium Amortization Interest Payment Date Jan 1. 2021 July 1. 2021 Jan 1. 2022 July 1. 2022 Jan 1 2023 e Textbook and Media List of Accounts BO ES $ % 3 6 7 9 2 E R . Y 0 s D F G K 7 X C V B N M imal places, e.g. 5,275.) SANDHILL LTD. Bond Premium Amortization Table Effective Interest Method-Semi-Annual Interest Payments 5% Bonds Issued at market rate of 4% Interest Expense Premium Amortization st Payment Bond Amortized Cost i i $ eTextbook and Media List of Accounts x Your answer is incorrect. Prepare all of the required journal entries related to the bonds that Sandhill Ltd. will record during 2021, including any adjusting journal entries at December 31, 2021. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1 (To record issuance of bonds.) July 1 I (To record interest payment.) Dec. 31 (To accrue interest expense.) What amounts would be reported as current and non-current in the liabilities section of Sandhill Ltd's December 31, 2021. balance sheet? (Round answers to 0 decimal places, e.g. 5,275.) SANDHILL LTD. Balance Sheet (Partial) eTextbook and Media List of Accounts X Your answer is incorrect. Record the payment of interest on January 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the x Your answer is incorrect. Record the payment of interest on January 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter o for the amounts.) Debit Credit Date Account Titles and Explanation Jan. 1 (To record interest payment.) eTextbook and Media List of Accounts x Your answer is incorrect. The bonds were redeemed on January 1, 2023 (after the interest had been paid and recorded) at 102. Prepare the journal entry for the redemption of the bonds. (Round answers to O decimal places, c.8.5.275. Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) The bonds were redeemed on January 1, 2023 (after the interest had been paid and recorded) at 102. Prepare the journal entry for the redemption of the bonds. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1 (To record redemption of bonds.) eTextbook and Media List of Accounts * Your answer is incorrect Assume instead that the bonds were not redeemed on January 1, 2023. Record the entry for the repayment of the bonds on January 1, 2031. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter o for the amounts.) Account Titles and Explanation Date Debit Credit Assume instead that the songs were not redeemed on January 1, 2023. Kecora the entry for the repayment or the bonas on January 1, 2031. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation Jan. 1 (To record maturity of bond) eTextbook and Media List of Accounts * Your answer is incorrect. What will be the total interest payment over the 10-year life of the bonds? What will be the total interest expense over the 10- year life of the bonds? (Round answers to decimal places, c.8.5,275.) Interest Payment $ Interest Expense $