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Year 1 July 1 Issued $ 3 9 , 5 0 0 , 0 0 0 of 2 0 - year, 7 % callable bonds
Year July Issued $ of year, callable bonds dated July Year at a market effective rate of receiving cash of $ Interest is payable semiannually on December and June Oct. Borrowed $ by issuing a sixyear, installment note to Nicks Bank. The note requires annual payments of $ with the first payment occurring on September Year Dec. Accrued $ of interest on the installment note. The interest is payable on the date of the next installment note payment. Paid the semiannual interest on the bonds. The bond discount amortization of $ is combined with the semiannual interest payment. Year June Paid the semiannual interest on the bonds. The bond discount amortization of $ is combined with the semiannual interest payment. Sept. Paid the annual payment on the note, which consisted of interest of $ and principal of $ Dec. Accrued $ of interest on the installment note. The interest is payable on the date of the next installment note payment. Paid the semiannual interest on the bonds. The bond discount amortization of $ is combined with the semiannual interest payment. Year June Recorded the redemption of the bonds, which were called at The balance in the bond discount account is $ after payment of interest and amortization of discount have been recorded. Record the redemption only. Sept. Paid the second annual payment on the note, which consisted of interest of $ and principal of $ Required: Journalize the entries to record the foregoing transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles. Indicate the amount of the interest expense in a Year and b Year Determine the carrying amount of the bonds as of December Year
Year
July Issued $ of year, callable bonds dated July Year at a market effective rate of receiving cash of $ Interest is payable semiannually on December and June
Oct. Borrowed $ by issuing a sixyear, installment note to Nicks Bank. The note requires annual payments of $ with the first payment occurring on September Year
Dec. Accrued $ of interest on the installment note. The interest is payable on the date of the next installment note payment.
Paid the semiannual interest on the bonds. The bond discount amortization of $ is combined with the semiannual interest payment.
Year
June Paid the semiannual interest on the bonds. The bond discount amortization of $ is combined with the semiannual interest payment.
Sept. Paid the annual payment on the note, which consisted of interest of $ and principal of $
Dec. Accrued $ of interest on the installment note. The interest is payable on the date of the next installment note payment.
Paid the semiannual interest on the bonds. The bond discount amortization of $ is combined with the semiannual interest payment.
Year
June Recorded the redemption of the bonds, which were called at The balance in the bond discount account is $ after payment of interest and amortization of discount have been recorded. Record the redemption only.
Sept. Paid the second annual payment on the note, which consisted of interest of $ and principal of $
Required:
Journalize the entries to record the foregoing transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles.
Indicate the amount of the interest expense in a Year and b Year
Determine the carrying amount of the bonds as of December Year
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