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28 Sep 2019
A company issues $4,000,000 of 6%, 15-year bonds dated January1, 201, that pay interest semiannually on June 30 and December 31.The bonds are issued at a price of $3,456,448.
1. Prepare the January 1, 2017, journal entry to record thebonds' issuance.
2. For each semiannual period, compute the (a) cash payment, (b)the straight line amortization, and (c) bond interest expense.
3. Determine the total bond interest expense to be recognizedover the bonds life.
4. Prepare the first two years of an amortization table usingthe straightline method.
5. Prepare the journal entries to record the first two interestpayments.
A company issues $4,000,000 of 6%, 15-year bonds dated January1, 201, that pay interest semiannually on June 30 and December 31.The bonds are issued at a price of $3,456,448.
1. Prepare the January 1, 2017, journal entry to record thebonds' issuance.
2. For each semiannual period, compute the (a) cash payment, (b)the straight line amortization, and (c) bond interest expense.
3. Determine the total bond interest expense to be recognizedover the bonds life.
4. Prepare the first two years of an amortization table usingthe straightline method.
5. Prepare the journal entries to record the first two interestpayments.
Nelly StrackeLv2
28 Sep 2019
