Required informationSkip to question [The following information applies to the questions displayed below.]Hillside issues $3,000,000 of 6%, 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 $2,592,334.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 1Req 2A to 2CReq 3Req 4Req 5 - (1&2) ### Educational Content: Journal Entry Worksheets#### Section 1: Instructions for Journal Entries**Task:**- Prepare the journal entries to record the first two interest payments. **Instructions:**- Complete this question by entering your answers in the table provided.**Table:**- **Columns:** - **Date:** Lists the scheduled dates for payments. - **Unamortized Discount:** Enter relevant values here. - **Carrying Value:** Enter calculated values.- **Rows:** - Includes five dates: 06/01/2021, 05/01/2022, 01/01/2022, 05/01/2023, and 10/01/2023.#### Section 2: Journal Entry Worksheet 1**Instructions:**- Record the first interest payment on June 30.**Entry Fields:**- **Date:** June 30- **General Journal:** Write the specific journal entry.- **Debit/Credit Columns:** Fill in the respective amounts.**Notes:**- Enter debits before credits.**Actions:**- Buttons to 'Record entry', 'Clear entry', or 'View general journal'.#### Section 3: Journal Entry Worksheet 2**Instructions:**- Record the second interest payment on December 31.**Entry Fields:**- **Date:** December 31- **General Journal:** Write the specific journal entry.- **Debit/Credit Columns:** Fill in the respective amounts.**Notes:**- Emphasis on entering debits before credits.**Actions:**- Buttons to 'Record entry', 'Clear entry', or 'View general journal'.### Navigation- Use "Req 4" and "Req 5" buttons to navigate between requirements.These worksheets guide the process of recording and managing journal entries for financial transactions related to interest payments, providing a structured approach to maintaining accurate financial records. **Educational Website Transcription:**---### Bond Issuance and Interest Calculation#### Requirement 1: Journal Entry for Bonds Issuance- **Task:** Prepare the January 1 journal entry to record the issuance of bonds.- **Details:** - **Date:** January 1, 2021 - **Par Value:** $3,000,000 - **Issue Price:** $2,592,334The journal entry worksheet requires the following:- **Date:** January 01- **General Journal Entries:** Students need to fill out the debit and credit columns.*Note: Remember to enter debits before credits.*---#### Requirement 2A to 2C: Bond Interest Calculation- **Objective:** Complete the table to calculate the total bond interest expense over the bond's lifetime.**Table Details:**1. **Amount Repaid:** - Payments of interest. - Par value at maturity.2. **Total Repaid:** Sum of all repayments.3. **Less Amount Borrowed:** Subtract the initial amount borrowed from the total repaid.4. **Total Bond Interest Expense:** Result from subtracting the amount borrowed from the total repaid.---#### Requirement 3: Semiannual Calculations- **Objective:** Compute for each semiannual period: - (a) Cash payment. - (b) Straight-line discount amortization. - (c) Bond interest expense.**Table Explanation:**- **Par Value (Maturity Value):** - Annual Rate - Year of issuance - Semiannual cash interest payment.- **Row Details:** 2a. Details to compute cash payment. 2b. Details for bond price, discount on bonds payable, and straight-line amortization. 2c. Handles semiannual cash payment, discount amortization, and bond interest expense.---#### Requirement 5: Journal Entries for Interest Payments- **Task:** Record journal entries for the first two interest payments.- **Details:** - Prepare the first two years of a straight-line amortization table. Note that intermediate and final answers must be rounded to whole dollars.**Table Details:**- **Semiannual Period:** - 06/30/2021 - 12/31/2021 - 06/30/2022 - 12/31/

The question is based on the concept of Financial Accounting. As per the Bartleby guidelines we are…

Answered: Hillside issues $3,000,000 of 6%,…

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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[The following information applies to the questions displayed below.]

Hillside issues $3,000,000 of 6%, 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 $2,592,334.

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
Req 3
Req 4
Req 5 - (1&2)

### Educational Content: Journal Entry Worksheets

#### Section 1: Instructions for Journal Entries

**Task:**
- Prepare the journal entries to record the first two interest payments.

**Instructions:**
- Complete this question by entering your answers in the table provided.

**Table:**
- **Columns:**
- **Date:** Lists the scheduled dates for payments.
- **Unamortized Discount:** Enter relevant values here.
- **Carrying Value:** Enter calculated values.

- **Rows:**
- Includes five dates: 06/01/2021, 05/01/2022, 01/01/2022, 05/01/2023, and 10/01/2023.

#### Section 2: Journal Entry Worksheet 1

**Instructions:**
- Record the first interest payment on June 30.

**Entry Fields:**
- **Date:** June 30
- **General Journal:** Write the specific journal entry.
- **Debit/Credit Columns:** Fill in the respective amounts.

**Notes:**
- Enter debits before credits.

**Actions:**
- Buttons to 'Record entry', 'Clear entry', or 'View general journal'.

#### Section 3: Journal Entry Worksheet 2

**Instructions:**
- Record the second interest payment on December 31.

**Entry Fields:**
- **Date:** December 31
- **General Journal:** Write the specific journal entry.
- **Debit/Credit Columns:** Fill in the respective amounts.

**Notes:**
- Emphasis on entering debits before credits.

**Actions:**
- Buttons to 'Record entry', 'Clear entry', or 'View general journal'.

### Navigation
- Use "Req 4" and "Req 5" buttons to navigate between requirements.

These worksheets guide the process of recording and managing journal entries for financial transactions related to interest payments, providing a structured approach to maintaining accurate financial records.

**Educational Website Transcription:**

---

### Bond Issuance and Interest Calculation

#### Requirement 1: Journal Entry for Bonds Issuance

- **Task:** Prepare the January 1 journal entry to record the issuance of bonds.
- **Details:**
- **Date:** January 1, 2021
- **Par Value:** $3,000,000
- **Issue Price:** $2,592,334

The journal entry worksheet requires the following:
- **Date:** January 01
- **General Journal Entries:** Students need to fill out the debit and credit columns.

*Note: Remember to enter debits before credits.*

---

#### Requirement 2A to 2C: Bond Interest Calculation

- **Objective:** Complete the table to calculate the total bond interest expense over the bond's lifetime.

**Table Details:**

1. **Amount Repaid:**
- Payments of interest.
- Par value at maturity.

2. **Total Repaid:** Sum of all repayments.

3. **Less Amount Borrowed:** Subtract the initial amount borrowed from the total repaid.

4. **Total Bond Interest Expense:** Result from subtracting the amount borrowed from the total repaid.

---

#### Requirement 3: Semiannual Calculations

- **Objective:** Compute for each semiannual period:
- (a) Cash payment.
- (b) Straight-line discount amortization.
- (c) Bond interest expense.

**Table Explanation:**

- **Par Value (Maturity Value):**
- Annual Rate
- Year of issuance
- Semiannual cash interest payment.

- **Row Details:**
2a. Details to compute cash payment.
2b. Details for bond price, discount on bonds payable, and straight-line amortization.
2c. Handles semiannual cash payment, discount amortization, and bond interest expense.

---

#### Requirement 5: Journal Entries for Interest Payments

- **Task:** Record journal entries for the first two interest payments.
- **Details:**
- Prepare the first two years of a straight-line amortization table. Note that intermediate and final answers must be rounded to whole dollars.

**Table Details:**

- **Semiannual Period:**
- 06/30/2021
- 12/31/2021
- 06/30/2022
- 12/31/

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