Denzel Corporation is planning to issue bonds with a face value of $600,000 and a coupon rate of 7.5 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Denzel uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 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. and 2. Prepare the journal entries to record the issuance of the bonds and interest payment on June 30 of this year. 3. What bonds payable amount will Denzel report on its June 30 balance sheet? Complete this question by entering your answers in the tabs below. Required 1 and 2 Required 3 1. and 2. Prepare the journal entries to record the issuance of the bonds and 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 final answers to whole dollars.) View transaction list

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Denzel Corporation is planning to issue bonds with a face value of $600,000 and a coupon rate of 7.5 percent. The bonds mature in
four years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Denzel
uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5
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. and 2. Prepare the journal entries to record the issuance of the bonds and interest payment on June 30 of this year.
3. What bonds payable amount will Denzel report on its June 30 balance sheet?
Complete this question by entering your answers in the tabs below.
Required 1
and 2
Required 3
1. and 2. Prepare the journal entries to record the issuance of the bonds and 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 final answers to whole dollars.)
View transaction list
Journal entry worksheet
<
2
Record the issuance of bonds.
Note: Enter debits before credits.
Date
January 01
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
>
Transcribed Image Text:Denzel Corporation is planning to issue bonds with a face value of $600,000 and a coupon rate of 7.5 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Denzel uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 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. and 2. Prepare the journal entries to record the issuance of the bonds and interest payment on June 30 of this year. 3. What bonds payable amount will Denzel report on its June 30 balance sheet? Complete this question by entering your answers in the tabs below. Required 1 and 2 Required 3 1. and 2. Prepare the journal entries to record the issuance of the bonds and 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 final answers to whole dollars.) View transaction list Journal entry worksheet < 2 Record the issuance of bonds. Note: Enter debits before credits. Date January 01 General Journal Debit Credit Record entry Clear entry View general journal >
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