2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker3D&takeAssignmentSessionLocator=&inprogress3false eBook Show Me How Calculator Print Item Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $18,200,000 of five-year, 9% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 11%, resulting in Chin receiving cash of $16,828,145. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar. 1. 2. 3. Check My Work Previous Next 4:26 PM 3/27/2020 b. Determine the amount of the bond interest expense for the first year. C. Why was the company able to issue the bonds for only $16,828,145 rather than for the face amount of $18,200,0007 The market rate of interest is the contract rate of interest. Therefore, inventors willing to pay the full face amount of the bonds. Previous Next Check My Work All work saved. Save and b Submit Assgrment for Grading 42 PM Prtsc Delete Insert CHD DIN F10 FI1 F12 FF D00 000 D00 000
2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker3D&takeAssignmentSessionLocator=&inprogress3false eBook Show Me How Calculator Print Item Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $18,200,000 of five-year, 9% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 11%, resulting in Chin receiving cash of $16,828,145. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar. 1. 2. 3. Check My Work Previous Next 4:26 PM 3/27/2020 b. Determine the amount of the bond interest expense for the first year. C. Why was the company able to issue the bonds for only $16,828,145 rather than for the face amount of $18,200,0007 The market rate of interest is the contract rate of interest. Therefore, inventors willing to pay the full face amount of the bonds. Previous Next Check My Work All work saved. Save and b Submit Assgrment for Grading 42 PM Prtsc Delete Insert CHD DIN F10 FI1 F12 FF D00 000 D00 000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker3D&takeAssignmentSessionLocator=&inprogress3false
eBook
Show Me How
Calculator
Print Item
Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method
On the first day of its fiscal year, Chin Company issued $18,200,000 of five-year, 9% bonds to finance its operations of producing and selling home
improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 11%, resulting in Chin receiving
cash of $16,828,145.
a. Journalize the entries to record the following:
1. Issuance of the bonds.
2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)
3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest
dollar.)
If an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar.
1.
2.
3.
Check My Work
Previous
Next
4:26 PM
3/27/2020
Transcribed Image Text:b. Determine the amount of the bond interest expense for the first year.
C. Why was the company able to issue the bonds for only $16,828,145 rather than for the face amount of $18,200,0007
The market rate of interest is
the contract rate of interest. Therefore, inventors
willing to pay the full face
amount of the bonds.
Previous
Next
Check My Work
All work saved.
Save and b
Submit Assgrment for Grading
42 PM
Prtsc
Delete
Insert
CHD
DIN
F10
FI1
F12
FF
D00 000
D00 000
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