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(Click the icon to view the bond assumptions.) Journalize issuance of the bond and the first semiannual interest payment under each of the three assumptions. The company amortizes bond premium and discount by the effective-interest amortization method. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries. Round your final answers to the nearest whole dollar.) Assumption 1. Seven-year bonds payable with face value of $84,000 and stated interest rate of 12%, paid semiannually. The market rate of interest is 12% at issuance. The present value of the bonds at issuance is $84,000. Journalize the issuance of the bonds when the market interest rate is 12%. Date Accounts Debit Credit Bonds Payable Journalize Cash Debit Credit Date Discount on Bonds Payable Interest Expense Premium on Bonds Payable Assumption 2. Same bonds payable as in assumption 1, but the market interest rate is 14%. The present value of the bonds at issuance is $76,667. Journalize the issuance of the bonds when the market interest rate is 14%. Date Accounts Debit Credit Journalize the first semiannual interest payment on the bonds. Date Accounts Debit Credit Assumption 3. Same bonds payable as in assumption 1, but the market interest rate is 10%. The present value of the bonds at issuance is $92,311. Journalize the issuance of the bonds when the market interest rate is 10%. Date Accounts Journalize the first semiannual interest payment on the bonds. Date Accounts Debit Credit Debit Credit More info 1. Seven-year bonds payable with face value of $84,000 and stated interest rate of 12%, paid semiannually. The market rate of interest is 12% at issuance. The present value of the bonds at issuance is $84,000. 2. Same bonds payable as in assumption 1, but the market interest rate is 14%. The present value of the bonds at issuance is $76,667. 3. Same bonds payable as in assumption 1, but the market interest rate is 10%. The present value of the bonds at issuance is $92,311. Print Done

(Click the icon to view the bond assumptions.) Journalize issuance of the bond and the first semiannual interest payment under each of the three assumptions. The company amortizes bond premium and discount by the effective-interest amortization method. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries. Round your final answers to the nearest whole dollar.) Assumption 1. Seven-year bonds payable with face value of $84,000 and stated interest rate of 12%, paid semiannually. The market rate of interest is 12% at issuance. The present value of the bonds at issuance is $84,000. Journalize the issuance of the bonds when the market interest rate is 12%. Date Accounts Debit Credit Bonds Payable Journalize Cash Debit Credit Date Discount on Bonds Payable Interest Expense Premium on Bonds Payable Assumption 2. Same bonds payable as in assumption 1, but the market interest rate is 14%. The present value of the bonds at issuance is $76,667. Journalize the issuance of the bonds when the market interest rate is 14%. Date Accounts Debit Credit Journalize the first semiannual interest payment on the bonds. Date Accounts Debit Credit Assumption 3. Same bonds payable as in assumption 1, but the market interest rate is 10%. The present value of the bonds at issuance is $92,311. Journalize the issuance of the bonds when the market interest rate is 10%. Date Accounts Journalize the first semiannual interest payment on the bonds. Date Accounts Debit Credit Debit Credit More info 1. Seven-year bonds payable with face value of $84,000 and stated interest rate of 12%, paid semiannually. The market rate of interest is 12% at issuance. The present value of the bonds at issuance is $84,000. 2. Same bonds payable as in assumption 1, but the market interest rate is 14%. The present value of the bonds at issuance is $76,667. 3. Same bonds payable as in assumption 1, but the market interest rate is 10%. The present value of the bonds at issuance is $92,311. Print Done

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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(Click the icon to view the bond assumptions.) Journalize issuance of the bond and the first semiannual interest payment under each of the three assumptions. The company amortizes bond premium and discount by the effective-interest amortization method. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries. Round your final answers to the nearest whole dollar.) Assumption 1. Seven-year bonds payable with face value of $84,000 and stated interest rate of 12%, paid semiannually. The market rate of interest is 12% at issuance. The present value of the bonds at issuance is $84,000. Journalize the issuance of the bonds when the market interest rate is 12%. Date Accounts Debit Credit Bonds Payable Journalize Cash Debit Credit Date Discount on Bonds Payable Interest Expense Premium on Bonds Payable Assumption 2. Same bonds payable as in assumption 1, but the market interest rate is 14%. The present value of the bonds at issuance is $76,667. Journalize the issuance of the bonds when the market interest rate is 14%. Date Accounts Debit Credit Journalize the first semiannual interest payment on the bonds. Date Accounts Debit Credit Assumption 3. Same bonds payable as in assumption 1, but the market interest rate is 10%. The present value of the bonds at issuance is $92,311. Journalize the issuance of the bonds when the market interest rate is 10%. Date Accounts Journalize the first semiannual interest payment on the bonds. Date Accounts Debit Credit Debit Credit More info 1. Seven-year bonds payable with face value of $84,000 and stated interest rate of 12%, paid semiannually. The market rate of interest is 12% at issuance. The present value of the bonds at issuance is $84,000. 2. Same bonds payable as in assumption 1, but the market interest rate is 14%. The present value of the bonds at issuance is $76,667. 3. Same bonds payable as in assumption 1, but the market interest rate is 10%. The present value of the bonds at issuance is $92,311. Print Done
Transcribed Image Text:(Click the icon to view the bond assumptions.) Journalize issuance of the bond and the first semiannual interest payment under each of the three assumptions. The company amortizes bond premium and discount by the effective-interest amortization method. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries. Round your final answers to the nearest whole dollar.) Assumption 1. Seven-year bonds payable with face value of $84,000 and stated interest rate of 12%, paid semiannually. The market rate of interest is 12% at issuance. The present value of the bonds at issuance is $84,000. Journalize the issuance of the bonds when the market interest rate is 12%. Date Accounts Debit Credit Bonds Payable Journalize Cash Debit Credit Date Discount on Bonds Payable Interest Expense Premium on Bonds Payable Assumption 2. Same bonds payable as in assumption 1, but the market interest rate is 14%. The present value of the bonds at issuance is $76,667. Journalize the issuance of the bonds when the market interest rate is 14%. Date Accounts Debit Credit Journalize the first semiannual interest payment on the bonds. Date Accounts Debit Credit Assumption 3. Same bonds payable as in assumption 1, but the market interest rate is 10%. The present value of the bonds at issuance is $92,311. Journalize the issuance of the bonds when the market interest rate is 10%. Date Accounts Journalize the first semiannual interest payment on the bonds. Date Accounts Debit Credit Debit Credit More info 1. Seven-year bonds payable with face value of $84,000 and stated interest rate of 12%, paid semiannually. The market rate of interest is 12% at issuance. The present value of the bonds at issuance is $84,000. 2. Same bonds payable as in assumption 1, but the market interest rate is 14%. The present value of the bonds at issuance is $76,667. 3. Same bonds payable as in assumption 1, but the market interest rate is 10%. The present value of the bonds at issuance is $92,311. Print Done
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