Hillside issues $1,800,000 of 7%,15-year bonds dated January 1, 2013, that pay interest semiannuallyon June 30 and December 31. The bonds are issued at a price of$1,555,401.
a) Prepare the January 1, 2013, journal entry to record thebondsâ issuance.
b) For each semiannual period, complete the table below tocalculate the cash payment.
c) For each semiannual period, complete the table below tocalculate the straight-line discount amortization.
d) For each semiannual period, complete the table below tocalculate the bond interest expense.
e) Complete the below table to calculate the total bond interestexpense to be recognized over the bonds' life.
f) Prepare the first two years of an amortization table usingthe straight-line method.
g) Prepare the journal entries to record the first two interestpayments.
Hillside issues $1,800,000 of 7%,15-year bonds dated January 1, 2013, that pay interest semiannuallyon June 30 and December 31. The bonds are issued at a price of$1,555,401.
a) Prepare the January 1, 2013, journal entry to record thebondsâ issuance.
b) For each semiannual period, complete the table below tocalculate the cash payment.
c) For each semiannual period, complete the table below tocalculate the straight-line discount amortization.
d) For each semiannual period, complete the table below tocalculate the bond interest expense.
e) Complete the below table to calculate the total bond interestexpense to be recognized over the bonds' life.
f) Prepare the first two years of an amortization table usingthe straight-line method.
g) Prepare the journal entries to record the first two interestpayments.
Related questions
Hillside issues $1,500,000 of 6%, 15-year bonds dated January 1,2013, that pay interest semiannually on June 30 and December 31.The bonds are issued at a price of $1,296,168.
1. Record the issue of bonds with a par value of $1,500,000 cashon January 1, 2013 at an issue price of $1,296,168.
2. For each semiannual period, complete the table below tocalculate the cash payment.
3. For each semiannual period, complete the table below tocalculate the straight-line discount amortization.
4. For each semiannual period, complete the table below tocalculate the bond interest expense.
5.
| Complete the below table to calculate the total bond interestexpense to be recognized over the bonds' life 6.
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| Hillside issues $2,200,000 of 7%, 15-year bonds dated January 1,2015, that pay interest semiannually on June 30 and December 31.The bonds are issued at a price of $1,901,046.
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Hillside issues $1,800,000 of 7%, 15-year bonds dated January 1,2015, that pay interest semiannually on June 30 and December 31.The bonds are issued at a price of $1,555,401.
| Required: | |
| 1. | Prepare the January 1, 2015, journal entry to record the bondsâissuance. |
2(a) For each semiannual period, complete thetable below to calculate the cash payment.
2(b) For each semiannual period, complete thetable below to calculate the straight-line discountamortization.
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