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Accounting Five problems Question

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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 Credit;Jan. 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 Carrying;Value;1/01/2011 $;$;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 Credit;June 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 Credit;Jan. 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.);Semiannual;Period-End Unamortized Premium Carrying;Value;1/01/2011 $;$;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 Credit;June 30;Dec. 31

 

Paper#80936 | Written in 18-Jul-2015

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