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Hambelton Ltd. issued $5,000,000 of 5% bonds payable on 1 September 20X9 to yield 4%. Interest on the bonds is paid semi-annually and is payable each 28 February and 31 August. The bonds were dated 1 March 20X8, and had an original term of five years. The accounting period ends on 31 December. The effective-interest method is used. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price at which the bonds were issued. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) Price of Bond $ 5,161,800 ......... 2. Prepare a bond amortization table for the life of the bond. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no cells blank - be certain to enter "O" wherever required.) Interest Expense Interest Net Bond Premium Amortization Unamortized Premium Date Payment Liability 161,800 $ 140,036 5,161,800 5,140,036 Opening 2$ 1 125,000 $ 103,236 2$ 21,764 125,000 117,837 22,199 22,643 102,801 5,117,837 3 125,000 102,357 95,193 5,095,193 4 125,000 101,904 23,096 72,097 5,072,097 125,000 23,558 24,029 5 101,442 48,539 5,048,539 6 125,000 100,971 24,510 5,024,510 7 125,000 100,490 24,510 5,000,000

Hambelton Ltd. issued $5,000,000 of 5% bonds payable on 1 September 20X9 to yield 4%. Interest on the bonds is paid semi-annually and is payable each 28 February and 31 August. The bonds were dated 1 March 20X8, and had an original term of five years. The accounting period ends on 31 December. The effective-interest method is used. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price at which the bonds were issued. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) Price of Bond $ 5,161,800 ......... 2. Prepare a bond amortization table for the life of the bond. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no cells blank - be certain to enter "O" wherever required.) Interest Expense Interest Net Bond Premium Amortization Unamortized Premium Date Payment Liability 161,800 $ 140,036 5,161,800 5,140,036 Opening 2$ 1 125,000 $ 103,236 2$ 21,764 125,000 117,837 22,199 22,643 102,801 5,117,837 3 125,000 102,357 95,193 5,095,193 4 125,000 101,904 23,096 72,097 5,072,097 125,000 23,558 24,029 5 101,442 48,539 5,048,539 6 125,000 100,971 24,510 5,024,510 7 125,000 100,490 24,510 5,000,000

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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Please help with number 3 only! both pictures are same but reference to what correct and incorrect.

3.Prepare journal entries to record the issuance of the bonds, payment of interest, and all necessary adjustments through to the end of 20X10. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 September 20X9 Cash 5,224,573 Premium on bonds payable 224,573 Bonds payable 5,000,000 2 31 December 20X9 Interest expense 104,492 Premium on bonds payable 20,508 Cash 125,000 3 28 February 20X10 Interest expense 104,492 Premium on bonds payable 20,508 Cash 125,000 4 31 August 20X10 Interest expense 104,082 Premium on bonds payable 20,918 Cash 125,000 31 December Interest expense 69,109 20X10 Premium on bonds payable 14,225 Accrued interest payable 83,333 X Answer is not complete. No Date General Journal Debit Credit 1 1 September 20x Cash 5,224,573 X Premium on bonds payable 224,573 X Bonds payable 5,000,000 2 31 December 20> Interest expense 104,492 X Premium on bonds payable 20,508 Cash 125,000 X 3 28 February 20x Interest expense 104,492 X Premium on bonds payable 20,508 X Cash 125,000 X 31 August 20X10 Interest expense 104,082 X Premium on bonds payable 20,918 X Cash 125,000 31 December 20> Interest expense 69,109 X Premium on bonds payable 14,225 X Accrued interest payable 83,333 4.
Transcribed Image Text:3.Prepare journal entries to record the issuance of the bonds, payment of interest, and all necessary adjustments through to the end of 20X10. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 September 20X9 Cash 5,224,573 Premium on bonds payable 224,573 Bonds payable 5,000,000 2 31 December 20X9 Interest expense 104,492 Premium on bonds payable 20,508 Cash 125,000 3 28 February 20X10 Interest expense 104,492 Premium on bonds payable 20,508 Cash 125,000 4 31 August 20X10 Interest expense 104,082 Premium on bonds payable 20,918 Cash 125,000 31 December Interest expense 69,109 20X10 Premium on bonds payable 14,225 Accrued interest payable 83,333 X Answer is not complete. No Date General Journal Debit Credit 1 1 September 20x Cash 5,224,573 X Premium on bonds payable 224,573 X Bonds payable 5,000,000 2 31 December 20> Interest expense 104,492 X Premium on bonds payable 20,508 Cash 125,000 X 3 28 February 20x Interest expense 104,492 X Premium on bonds payable 20,508 X Cash 125,000 X 31 August 20X10 Interest expense 104,082 X Premium on bonds payable 20,918 X Cash 125,000 31 December 20> Interest expense 69,109 X Premium on bonds payable 14,225 X Accrued interest payable 83,333 4.
Hambelton Ltd. issued $5,000,000 of 5% bonds payable on 1 September 20X9 to yield 4%. Interest on the bonds is paid semi-annually and is payable each 28 February and 31 August. The bonds were dated 1 March 20X8, and had an original term of five years. The accounting period ends on 31 December. The effective-interest method is used. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price at which the bonds were issued. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) Price of Bond $ 5,161,800 2. Prepare a bond amortization table for the life of the bond. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no cells blank - be certain to enter "O" wherever required.) Interest Payment Interest Expense Premium Unamortized Net Bond Date Amortization Premium Liability Opening $ 161,800 $ 5,161,800 1 125,000 $ 103,236 $ 21,764 140,036 5,140,036 2 125,000 102,801 22,199 117,837 5,117,837 3 125,000 102,357 22,643 95,193 5,095,193 4 125,000 101,904 23,096 72,097 5,072,097 125,000 101,442 23,558 48,539 5,048,539 125,000 100,971 24,029 24,510 5,024,510 7 125,000 100,490 24,510 5,000,000
Transcribed Image Text:Hambelton Ltd. issued $5,000,000 of 5% bonds payable on 1 September 20X9 to yield 4%. Interest on the bonds is paid semi-annually and is payable each 28 February and 31 August. The bonds were dated 1 March 20X8, and had an original term of five years. The accounting period ends on 31 December. The effective-interest method is used. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price at which the bonds were issued. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) Price of Bond $ 5,161,800 2. Prepare a bond amortization table for the life of the bond. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no cells blank - be certain to enter "O" wherever required.) Interest Payment Interest Expense Premium Unamortized Net Bond Date Amortization Premium Liability Opening $ 161,800 $ 5,161,800 1 125,000 $ 103,236 $ 21,764 140,036 5,140,036 2 125,000 102,801 22,199 117,837 5,117,837 3 125,000 102,357 22,643 95,193 5,095,193 4 125,000 101,904 23,096 72,097 5,072,097 125,000 101,442 23,558 48,539 5,048,539 125,000 100,971 24,029 24,510 5,024,510 7 125,000 100,490 24,510 5,000,000
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