234567891011N121314151617181920Instructions:23Year 1JulyOct.Dec.Year 2JuneSept.Dec.Year 3JuneSept.11313130303131Journalize the entries of these transactions for Parkway Inc. whose fiscal year is the calendar year. Round all amounts to thenearest dollar. Refer to the Chart of Accounts for exact wording of account titles.Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2.Determine the carrying amount of the bonds as of December 31, Year 2.30Bond Issued: $58,800,000 of 20-year, 11% callable bonds dated July 1, Year 1, at a market rate of 13%, receiving cash of$50,482,396. Interest is payable semiannually on December 31 and June 30.Went to bank and borrowed $320,000 by issuing a six-year, 5% installment note to Citizen's Bank. The note requires annualpayments of $63,046, with the first payment occurring on September 30, Year 2.Record the accrued $4,000 of interest on the installment note. The interest is payable on the date of the next installmentnote payment.Record the payment of semiannual interest on the bonds. The bond discount amortization of $207,940 is combined with thesemiannual interest payment.Record the payment of semiannual interest on the bonds. The bond discount amortization of $207,940 is combined with thesemiannual interest payment.Record payment of annual payment on the note, interest of $16,000 and principal of $47,046.Record accrued interest of $3,412 on the installment note. The interest is payable with the next installment note payment.Record payment of semiannual interest on the bonds. The bond discount amortization of $207,940 is combined with thesemiannual interest payment.Redeem bond at 98. The balance in the bond discount account is $7,485,844 after payment of interest and amortization ofdiscount have been recorded. Record the redemption only.30 Record payment of the second annual payment on the note, which consisted of interest of $13,648 and principal of $49,398.I

The financial transactions associated with issuing and repaying bonds must be recorded and reported…

1 2 3 Year 1 July 1 Journalize the entries of these transactions for Parkway Inc. whose fiscal year is the calendar year. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2. Determine the carrying amount of the bonds as of December 31, Year 2. Bond Issued: $58,800,000 of 20-year, 11% callable bonds dated July 1, Year 1, at a market rate of 13%, receiving cash of $50,482,396. Interest is payable semiannually on December 31 and June 30.

1 2 3 Year 1 July 1 Journalize the entries of these transactions for Parkway Inc. whose fiscal year is the calendar year. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2. Determine the carrying amount of the bonds as of December 31, Year 2. Bond Issued: $58,800,000 of 20-year, 11% callable bonds dated July 1, Year 1, at a market rate of 13%, receiving cash of $50,482,396. Interest is payable semiannually on December 31 and June 30.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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