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 of20X10. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round youranswers to the nearest whole dollar amount.)View transaction listView journal entry worksheetNoDateGeneral JournalDebitCredit1 September 20X9 Cash5,224,573Premium on bonds payable224,573Bonds payable5,000,000231 December 20X9 Interest expense104,492Premium on bonds payable20,508Cash125,000328 February 20X10 Interest expense104,492Premium on bonds payable20,508Cash125,000431 August 20X10 Interest expense104,082Premium on bonds payable20,918Cash125,00031 DecemberInterest expense69,10920X10Premium on bonds payable14,225Accrued interest payable83,333X Answer is not complete.NoDateGeneral JournalDebitCredit11 September 20x Cash5,224,573 XPremium on bonds payable224,573 XBonds payable5,000,000231 December 20> Interest expense104,492 XPremium on bonds payable20,508Cash125,000 X328 February 20x Interest expense104,492 XPremium on bonds payable20,508 XCash125,000 X31 August 20X10 Interest expense104,082 XPremium on bonds payable20,918 XCash125,00031 December 20> Interest expense69,109 XPremium on bonds payable14,225 XAccrued interest payable83,3334. Hambelton Ltd. issued $5,000,000 of 5% bonds payable on 1 September 20X9 to yield 4%. Interest on the bonds is paid semi-annuallyand is payable each 28 February and 31 August. The bonds were dated 1 March 20X8, and had an original term of five years. Theaccounting period ends on 31 December. The effective-interest method is used. (PV of $1, PVA of $1, and PVAD of $1.) (Useappropriate 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 intermediatecalculations. Round your final answer to the nearest whole dollar amount.)Price of Bond$5,161,8002. Prepare a bond amortization table for the life of the bond. (Round time value factor to 5 decimal places. Do not roundintermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no cells blank - be certain to enter"O" wherever required.)InterestPaymentInterestExpensePremiumUnamortizedNet BondDateAmortizationPremiumLiabilityOpening$161,800 $5,161,8001125,000$103,236$21,764140,0365,140,0362125,000102,80122,199117,8375,117,8373125,000102,35722,64395,1935,095,1934125,000101,90423,09672,0975,072,097125,000101,44223,55848,5395,048,539125,000100,97124,02924,5105,024,5107125,000100,49024,5105,000,000

Since you have asked to give answer of Point No. 3, answer has been provided for that particular…

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q