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Patton issues $650,000 of 5.0%, four-year bonds...

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Patton issues $650,000 of 5.0%, four-year bonds dated January 1, 2011, that pay interest semiannually on June 30 and December 31. They are issued at $584,361 and their market rate is 8% at the issue date. 3. value: 10 points 1. Prepare the January 1, 2011, journal entry to record the bonds' issuance. (Omit the "$" sign in your response.) Date General Journal Debit Credit Jan. 1 check my workeBook Links (2)references 4. value: 10 points 2. Determine the total bond interest expense to be recognized over the bonds' life. (Omit the "$" sign in your response.) Total bond interest expense $ check my workeBook Links (2)references 5. value: 10 points 3. Prepare a straight-line amortization table for the bonds' first two years. (Make sure that the unamortized discount is adjusted to "0" and the carrying value equals to face value of the bond in the last period. Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.) Semiannual Interest Period-End Unamortized Discount Carrying Value 1/01/2011 $ $ 6/30/2011 12/31/2011 6/30/2012 12/31/2012 check my workeBook Links (2)references 6. value: 10 points 4. Prepare the journal entries to record the first two interest payments. (Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.) Date General Journal Debit Credit June 30 Dec. 31

 

Paper#11059 | Written in 18-Jul-2015

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