W2 On C Writing * C Home | Chegg.com X Mal-Mohamud, Nasr x C Get Homework Help W X G how many questions x takeAssignment/takeAssignment Main.do?invokeretakeAssignmentSessionLocator Sinprogress-false Fanproj Productio Admission & Add N Netflix Pinterest rate printer ma 2. Google Docs on Google Do E m - Google De + Calculator Bond Discount, Entries for Bonds Payable Transactions On July 1, 2041, Livingston Corporation, a wholesaler of manufacturing equipment, issued $7,600,000 of 5 year, 9% bonds at a market (effective) interest rate of 11%, receiving cash of $7,027,137. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: For all journal entries, if an amount box does not require an entry, leave it bank 1. Joumalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2011 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, 2011, and the amortization of the bond discount, using the straight-line method. Round to the nearest dollar. b. The interest payment on June 30, 20Y2, and the amortization of the bond discount, using the straight line method. Round to the nearest dollar NOWV2 Onli x C Writing * C Home I Chegg.com X Mail. Mohamud. Now Get Homewor Wilrn/takeAssignment/takeAssignmentMain.do?invokerStakeAssignmentSession Locator Sinprogress false all Fanpro Productio... V Admission Add- > N Netflix Pinterest rater Google Docs x - Google De v e- ats Calculator 2. Journalize the entries to record the following: a. The hrst semiannual interest payment on December 31, 2011, and the amortization of the bond discount, using the straight-line method. Hound to the nearest doar b. The interest payment on June 30, 2012, and the amortization of the bond discount, using the straight-line method. Round to the nearest dollar. 3. Determine the total interest expense for 2011. Round to the nearest dollar 4. Will the bond proceeds always be less than the face amount of the bonds when the contrast rates less than the market rate of interest? 5. Compute the price of $7,027,137 received for the bonds by using the present value tables in Appendix A. Round your PV values to decimal places and the fall answers to the nearest dollar. Your total may vary slightly from the price given due to rounding differences Present value of the face amount Present value of the semiannual interest payments Price received for the bonds 21 Onli X C Writing Home | Chegg.com * Mail. Mohamud, Nasr. C Get Homework Help how many questions keAssignment/takeAssignmentMain.do?invokere&takeAssignmentSessionLocatoreBinprogress false Fanpro Productio. V Admission & Add-.. ~ N Netflix Pinterest prete printer mla 2- Google Docs mla 1 - Google Do m e 3 - Google De Calculator Entries for issuing bonds and amortizing premium by straight-line method Chart of Accounts Journal Final Question Journal Instructions Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 2011, Smiley issued $25,100,000 of five year, 5% bonds at a market (efective interest rate of 3%, receiving cash of $27,414,835. Interest is payable semiannually on April 1 and October 1. Required: a. Journalire the entries to record the following. Refer to the Chart of Accounts for exact wording of accountities. 1. Issuance of bonds on April 1, 20Y1. 2. First interest payment on October 1, 2011, and amortization of bond premium for six months, using the straight-line method (Round nearest dollar) b. Explain why the company was able to issue the bonds for $27,414,835 rather than for the face amount of $25,100,000. 21 Onix C Writing * Home Chegg.com X Mail - Mohamud, Nasri Get Homework Help W X G how many questions ReAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Fanpro Productio... Admission & Add... @ Netflix Pinterest rate printer mla 2- Google Docs mla 1- Google Do m la 3 - Google Calculator Entries for issuing bonds and amortizing premium by straight-line method Instructions Chart of Accounts Journal Final Question Journal PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION DEBIT CREDIT ASSETS LUBILITIES EQUITY
