Year 1 July 1 Issued $6,880,000 of five year, 9% callable bonds dated July 1, Year 1, at a market (effective) rate of 10%, receiving cash of $6,614,372. Interest is payable semiannually on December 31 and June 30. Oct. 1. Borrowed $380,000 by issuing a 10-year, 8% installment note to Nicks Bank. The note requires annual payments of $57,631, with the first payment occurring on September 30, Year 2 Dec. 31. Accrued 57.600 of interest on the installment note. The interest is payable on the date of the next installment note payment. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $26,563 in combined with the semiannual interest payment Year 2 June 30. Paid the semiannual interest on the bonds. The bond discount amortization of $26,563 is combined with the semiannual interest payment Sept. 30. Paid the annual payment on the note, which consisted of interest of $30,400 and principal of $27,231 Dec. 31. Accrued 37,055 of interest on the installment note. The interest is payable on the date of the next installment note payment. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $26,563 is combined with the semiannual interest payment Year June 30. Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $159,376 after payment of Interest and amortization of discount have been recorded. Record the redemption only. Sept. 30. Pald the second annual payment on the note, which consisted of interest of $28,222 and prindpal of $29.409, Required: Round all amounts to the nearest dollar ET 1. Journalize the entries to record the foregoing transactions. If an amount box does not require an entry, leave it blank. Date Account Debit Credit Year 1 July Cash Bonds Payable Interest Expense Oct 1 monds Payabile III | || | Dec. 31-Note Dec 31 Bond We 2 June 30 July 1 Issued $6,880,000 of five-year, 9% Callable bonds dated July 1, Year 1, at a macket (effective) rate of 10%, receiving cash of $6,614,372. Interest is payable semiannually on December 31 and June 30. Oc. 1. Borrowed $300,000 by issuing a 10-year, 3% installment note to Nicks Bank. The note requires annual payments of $57,631, with the first payment occurring on September 30, Year 2. Dec. 31. Accrued $7,600 of interest on the installment note. The interest is payable on the date of the next installment note payment 31. Paid the semiannual Interest on the bonds. The bond discount amortization of $26,563 is combined with the semiannunt interest payment. Year 2 June 30. Pald the semiannual interest on the bonds. The bond discount amortization of $26,563 is combined with the semiannual interest payment Sept. 30. Paid the annual payment on the note, which consisted of interest of $30,400 and principal of $27,231. Dec. 31. Accrued 57,055 of interest on the installment note. The interest is payable on the date of the next installment note payment. 31. Paid the semiannual interest on the bands. The bond discount amortization of $26,563 is combined with the semiannual interest payment. Year 3 June 30. Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $159,376 after payment of interest and amortization of discount have been recorded. Record the redemption only. Sept. 10. Pald the second annual payment on the nate, which consisted of interest of $28,222 and principal of $29,409. Required: Round all amounts to the nearest dollar. 1. Journalize the entries to record the foregoing transactions. If an amount box does not require an entry, leave it blank Arnun Dehlt Crede Previous OVO more Check My Work uses remaining
