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a. Prepare the journal entry to record the issuance of the bonds on January 1, 2018. Date Accounts Jan. 1, 2018 Debit Credit Before journalizing entries (b) and (c), prepare an amortization schedule for the bonds through the first two semi-annual interest periods. (Use a financial calculator to compute the semi-annual effective interest rate and round the semi-annual effective rate to four decimal places, X.XXXX%. Round all currency amounts to the nearest whole dollar.)

a. Prepare the journal entry to record the issuance of the bonds on January 1, 2018. Date Accounts Jan. 1, 2018 Debit Credit Before journalizing entries (b) and (c), prepare an amortization schedule for the bonds through the first two semi-annual interest periods. (Use a financial calculator to compute the semi-annual effective interest rate and round the semi-annual effective rate to four decimal places, X.XXXX%. Round all currency amounts to the nearest whole dollar.)

FINANCIAL ACCOUNTING
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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b. Prepare the journal entry to record the payment of interest and related amortization on July 1, 2018. Date Accounts Debit Jul. 1, 2018 Credit c. Prepare the journal entry to record the accrual of interest and related amortization on December 31, 2018. Date Accounts Debit Credit Dec. 31, 2018
Transcribed Image Text:b. Prepare the journal entry to record the payment of interest and related amortization on July 1, 2018. Date Accounts Debit Jul. 1, 2018 Credit c. Prepare the journal entry to record the accrual of interest and related amortization on December 31, 2018. Date Accounts Debit Credit Dec. 31, 2018
Australian Horse Rides Ltd. issues $6,000,000 of six-year, 10% bonds dated January 1, 2018. Interest is payable on January 1 and July 1 each year. The proceeds realized from the issue were the $6,765,932 sales price less the $60,000 fee charged by Horse's lawyers. Horse's year-end is December 31. Read the requirement. a. Prepare the journal entry to record the issuance of the bonds on January 1, 2018. Accounts Debit Date Jan. 1, 2018 Before journalizing entries (b) and (c), prepare an amortization schedule for the bonds through the first two semi-annual interest periods. (Use a financial calculator to compute the semi-annual effective interest rate and round the semi-annual effective rate to four decimal places, X.XXXX%. Round all currency amounts to the nearest whole dollar.) Semi-annual interest expense at Date 2018 Jan. 1 2018 Jul. 1 2019 Jan. 1 % Credit Interest paid Premium amortized Amortized cost
Transcribed Image Text:Australian Horse Rides Ltd. issues $6,000,000 of six-year, 10% bonds dated January 1, 2018. Interest is payable on January 1 and July 1 each year. The proceeds realized from the issue were the $6,765,932 sales price less the $60,000 fee charged by Horse's lawyers. Horse's year-end is December 31. Read the requirement. a. Prepare the journal entry to record the issuance of the bonds on January 1, 2018. Accounts Debit Date Jan. 1, 2018 Before journalizing entries (b) and (c), prepare an amortization schedule for the bonds through the first two semi-annual interest periods. (Use a financial calculator to compute the semi-annual effective interest rate and round the semi-annual effective rate to four decimal places, X.XXXX%. Round all currency amounts to the nearest whole dollar.) Semi-annual interest expense at Date 2018 Jan. 1 2018 Jul. 1 2019 Jan. 1 % Credit Interest paid Premium amortized Amortized cost
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