equired information The following information applies to the questions displayed below.] illside issues $2,200,000 of 7%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and ecember 31. nds are issued at a price of $1,901,046.
equired information The following information applies to the questions displayed below.] illside issues $2,200,000 of 7%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and ecember 31. nds are issued at a price of $1,901,046.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A9
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Required information
[The following information applies to the questions displayed below.]
Hillside issues $2,200,000 of 7%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and
December 31.
The bonds are issued at a price of $1,901,046.
Required:
1. Prepare the January 1 journal entry to record the bonds' issuance.
2(a) For each semiannual period, complete the table below to calculate the cash payment.
2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization.
2(c) For each semiannual period, complete the table below to calculate the bond interest expense.
3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life.
4. Prepare the first two years of a straight-line amortization table.
5. Prepare the journal entries to record the first two interest payments.
Complete this question by entering your answers in the tabs below.
Req 1
Req 2A to 2C
View transaction list
No
1
Req 3
Prepare the January 1 journal entry to record the bonds' issuance.
Date
January 01
Req 4
View journal entry worksheet
Cash
Req 5
General Journal
Bonds payable
Discount on bonds payable
< Req 1
Req 2A to 2C >
Debit
1,901,046
Credit
2,200,000
298,954](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad20a5ff-0602-4af2-9825-fb30bc55f6cb%2Fa4831c80-01a0-4e12-9c08-95930615ff4e%2Ffqnyljk_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
Hillside issues $2,200,000 of 7%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and
December 31.
The bonds are issued at a price of $1,901,046.
Required:
1. Prepare the January 1 journal entry to record the bonds' issuance.
2(a) For each semiannual period, complete the table below to calculate the cash payment.
2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization.
2(c) For each semiannual period, complete the table below to calculate the bond interest expense.
3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life.
4. Prepare the first two years of a straight-line amortization table.
5. Prepare the journal entries to record the first two interest payments.
Complete this question by entering your answers in the tabs below.
Req 1
Req 2A to 2C
View transaction list
No
1
Req 3
Prepare the January 1 journal entry to record the bonds' issuance.
Date
January 01
Req 4
View journal entry worksheet
Cash
Req 5
General Journal
Bonds payable
Discount on bonds payable
< Req 1
Req 2A to 2C >
Debit
1,901,046
Credit
2,200,000
298,954
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