PR 14-6A Bond premium, entries for bonds payable transactions, interest method of amortizing bond premium. O’Halloran, Inc. produces and sells outdoor equipment. On July 1, Year 1, O’Halloran, Inc. issued $32,000,000 of 6-year, 8% bonds at a market (effective) interest rate of 7%, receiving cash of $33,546,022. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.Retrieved from: Warren, C. S., Jonick, C. A., & Schneider, J. S. (2021). Accounting (28 ed.). Boston, MA: Cengage.Instructions1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.2. Journalize the entries to record the following:a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the interest method. Round to the nearest dollar.b. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the interest method. Round to the nearest dollar.3. Determine the total interest expense for Year 1 please look over picture one, and answer on picture two! thank you for your time! **Problem 14-6A****Question 1**- **Year 1** - **July 1** - Three entries are listed, all marked "Wrong."**Question 2**- **a. Year 1** - **Dec. 31** - Three entries are listed, all marked "Wrong."- **b. Year 2** - **June 30** - Three entries are listed, all marked "Wrong."**Question 3**- A single entry is present, no further details given. **PR 14-6A Bond premium, entries for bonds payable transactions, interest method of amortizing bond premium.**O’Halloran, Inc. produces and sells outdoor equipment. On July 1, Year 1, O’Halloran, Inc. issued $32,000,000 of 6-year, 8% bonds at a market (effective) interest rate of 7%, receiving cash of $33,546,022. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.*Retrieved from:*Warren, C. S., Jonick, C. A., & Schneider, J. S. (2021). *Accounting* (28 ed.). Boston, MA: Cengage.---**Instructions**1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds. 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the interest method. Round to the nearest dollar. b. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the interest method. Round to the nearest dollar.3. Determine the total interest expense for Year 1.

Bond :— It is one of the source of capital that pays fixed periodic interest and face value at the…

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PR 14-6A Bond premium, entries for bonds payable transactions, interest method of amortizing bond premium. O’Halloran, Inc. produces and sells outdoor equipment. On July 1, Year 1, O’Halloran, Inc. issued $32,000,000 of 6-year, 8% bonds at a market (effective) interest rate of 7%, receiving cash of $33,546,022. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

Retrieved from:

Warren, C. S., Jonick, C. A., & Schneider, J. S. (2021). Accounting (28 ed.). Boston, MA: Cengage.
Instructions
1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.
2. Journalize the entries to record the following:
a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the interest method. Round to the nearest dollar.
b. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the interest method. Round to the nearest
dollar.
3. Determine the total interest expense for Year 1

please look over picture one, and answer on picture two! thank you for your time!

**Problem 14-6A**

**Question 1**

- **Year 1**
- **July 1**
- Three entries are listed, all marked "Wrong."

**Question 2**

- **a. Year 1**
- **Dec. 31**
- Three entries are listed, all marked "Wrong."

- **b. Year 2**
- **June 30**
- Three entries are listed, all marked "Wrong."

**Question 3**

- A single entry is present, no further details given.

**PR 14-6A Bond premium, entries for bonds payable transactions, interest method of amortizing bond premium.**

O’Halloran, Inc. produces and sells outdoor equipment. On July 1, Year 1, O’Halloran, Inc. issued $32,000,000 of 6-year, 8% bonds at a market (effective) interest rate of 7%, receiving cash of $33,546,022. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

*Retrieved from:*

Warren, C. S., Jonick, C. A., & Schneider, J. S. (2021). *Accounting* (28 ed.). Boston, MA: Cengage.

---

**Instructions**

1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.

2. Journalize the entries to record the following:

a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the interest method. Round to the nearest dollar.

b. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the interest method. Round to the nearest dollar.

3. Determine the total interest expense for Year 1.

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