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Accounting Five problems Question

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Question;1. Heathrow issues $1,500,000 of 6%, 15-year bonds dated January 1, 2011, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,296,168.Required:1. Prepare the January 1, 2011, journal entry to record the bonds? issuance. (Omit the "$" sign in your response.)Date General Journal Debit CreditJan. 1________________________________________2(a) For each semiannual period, compute the cash payment. (Omit the "$" sign in your response.)Cash payment $ 2(b) For each semiannual period, compute the the straight-line discount amortization. (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)Amount of discount amortization $ 2(c) For each semiannual period, compute the bond interest expense. (Round your intermediate calculations and final answer to the nearest dollar amount. Omit the "$" sign in your response.)Bond interest expense $ 3. Determine the total bond interest expense to be recognized over the bonds' life. (Omit the "$" sign in your response.)Total bond interest expense $ 4. Prepare the first two years of an amortization table using the straight-line method. (Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response. Omit the "$" sign in your response.)Semiannual Period-End Unamortized Discount CarryingValue1/01/2011 $ $ 6/30/2011 12/31/2011 6/30/2012 12/31/2012 ________________________________________5. 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 CreditJune 30 Dec. 31 ________________________________________Heathrow issues $1,300,000 of 7%, 15-year bonds dated January 1, 2011, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,591,194.Required:1. Prepare the January 1, 2011, journal entry to record the bonds? issuance. (Omit the "$" sign in your response.)Date General Journal Debit CreditJan. 1 ________________________________________2(a) For each semiannual period, compute the cash payment. (Omit the "$" sign in your response.)Cash payment $ 2(b) For each semiannual period, compute the the straight-line premium amortization. (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)Amount of premium amortized $ 2(c) For each semiannual period, compute the the bond interest expense. (Omit the "$" sign in your response.)Bond interest expense $ 3. Determine the total bond interest expense to be recognized over the bonds' life. (Omit the "$" sign in your response.)Total bond interest expense $ 4. Prepare the first two years of an amortization table using the straight-line method. (Omit the "$" sign in your response.)SemiannualPeriod-End Unamortized Premium CarryingValue1/01/2011 $ $ 6/30/2011 12/31/2011 6/30/2012 12/31/2012 ________________________________________5. Prepare the journal entries to record the first two interest payments. (Omit the "$" sign in your response.)Date General Journal Debit CreditJune 30 Dec. 31

 

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