ces E10-22 (Algo) Recording and Reporting a Bond Issued at a Premium (Straight-Line Amortization with Premium Account) LO10-5 On January 1 of this year, Kona Corporation sold bonds with a face value of $1,410,000 and a coupon rate of 7 percent. The bonds mature in four years and pay Interest semiannually every June 30 and December 31. Kona uses the straight-line amortization method and also uses a premium account. Assume an annual market rate of Interest of 4 percent. (FV of $1. PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Required: 1. & 2. Prepare the Journal entry to record the Issuance of the bonds and the Interest payment on June 30 of this year. 3. What bonds payable amount will Kona report on Its June 30 balance sheet? Complete this question by entering your answers in the tabs below. Required 1 and 2 Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final answers to whole dollars.) Required 3 View transaction list Journal entry worksheet < 1 2 Record the issuance of the bonds. Note: Enter debits before credits. Date January 01 General Journal Debit Credit
ces E10-22 (Algo) Recording and Reporting a Bond Issued at a Premium (Straight-Line Amortization with Premium Account) LO10-5 On January 1 of this year, Kona Corporation sold bonds with a face value of $1,410,000 and a coupon rate of 7 percent. The bonds mature in four years and pay Interest semiannually every June 30 and December 31. Kona uses the straight-line amortization method and also uses a premium account. Assume an annual market rate of Interest of 4 percent. (FV of $1. PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Required: 1. & 2. Prepare the Journal entry to record the Issuance of the bonds and the Interest payment on June 30 of this year. 3. What bonds payable amount will Kona report on Its June 30 balance sheet? Complete this question by entering your answers in the tabs below. Required 1 and 2 Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final answers to whole dollars.) Required 3 View transaction list Journal entry worksheet < 1 2 Record the issuance of the bonds. Note: Enter debits before credits. Date January 01 General Journal Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:nces
E10-22 (Algo) Recording and Reporting a Bond Issued at a Premium (Straight-Line Amortization with
Premium Account) LO10-5
On January 1 of this year, Kona Corporation sold bonds with a face value of $1,410,000 and a coupon rate of 7 percent. The bonds
mature in four years and pay Interest semiannually every June 30 and December 31. Kona uses the straight-line amortization method
and also uses a premium account. Assume an annual market rate of Interest of 4 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
Note: Use appropriate factor(s) from the tables provided.
Required:
1. & 2. Prepare the Journal entry to record the Issuance of the bonds and the Interest payment on June 30 of this year.
3. What bonds payable amount will Kona report on Its June 30 balance sheet?
Complete this question by entering your answers in the tabs below.
Required 1
and 2
Required 3
Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year. (If no entry is required
for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final
answers to whole dollars.)
View transaction list
Journal entry worksheet
1
2
Record the issuance of the bonds.
Note: Enter debits before credits.
Date
January 01
Record entry
General Journal
Clear entry
< Required 1 and 2
Debit
Credit
View general journal
Required 3 >
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