E14.7 (LO 1) Groupwork (Determine Proper Amounts in Account Balances) Presented beloware three independent situations.Instructionsa. McEntire Co. sold $2,500,000 of 11%, 10-year bonds at 106.231 to yield 10% on January 1, 2022.The bonds were dated January 1, 2022, and pay interest on July 1 and January 1. Determine theamount of interest expense to be reported on July 1, 2022, and December 31, 2022.b. Cheriel Inc. issued $600,00o of 9%, 10-year bonds on June 30, 2022, for $562,500. This priceprovided a yield of 10% on the bonds. Interest is payable semiannually on December 31 and June30. Determine the amount of interest expense to record if financial statements are issued onOctober 31, 2022.c. On October 1, 2022, Chinook Company sold 12% bonds having a maturity value of $800,000 for$853,382 plus accrued interest, which provides the bondholders with a 10% yield. The bonds aredated January 1, 2022, and mature January 1, 2027, with interest payable December 31 of eachyear. Prepare the journal entries at the date of the bond issuance and for the first interestpayment.

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a. McEntire Co. sold $2,500,00o of 11%, 10-year bonds at 106.231 to yield 10% on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on July 1 and January 1. Determine the amount of interest expense to be reported on July 1, 2022, and December 31, 2022.

a. McEntire Co. sold $2,500,00o of 11%, 10-year bonds at 106.231 to yield 10% on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on July 1 and January 1. Determine the amount of interest expense to be reported on July 1, 2022, and December 31, 2022.

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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