### Hillside Bond Issuance Exercise**Scenario:**Hillside issues $4,000,000 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 $3,456,448.**Requirements:**1. **Journal Entry for Bonds Issuance:** - Prepare the January 1 journal entry to record the bonds' issuance.2. **Bond Payment Calculations for Semiannual Period:** - **(a) Cash Payment Calculation:** - For each semiannual period, complete the table below to calculate the cash payment. - **(b) Straight-Line Discount Amortization Calculation:** - For each semiannual period, complete the table below to calculate the straight-line discount amortization. - **(c) Bond Interest Expense Calculation:** - For each semiannual period, complete the table below to calculate the bond interest expense.3. **Total Bond Interest Expense Calculation:** - Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life.4. **Straight-Line Amortization Table:** - Prepare the first two years of a straight-line amortization table.5. **Journal Entries for Interest Payments:** - Prepare the journal entries to record the first two interest payments. - **Note:** Round your intermediate and final answers to the nearest whole dollar.### Steps and Additional Information:- To proceed with the exercise and enter your answers, access the respective tabs below: - Req 1 - Req 2A to 2C - Req 3 - Req 4 - Req 5- **Sample Layout for Responses:** - **Requirement 1:** Compile entries for January 1. - **Requirement 2:** Fill in the semiannual calculations pertinent to each subsection. - **Requirement 3:** Determine and tabulate total bond interest expenses. - **Requirement 4:** Develop the amortization table. - **Requirement 5:** Formulate journal entries for the initial interest payments.- The interface allows you to view a transaction list and utilize a journal entry worksheet for organized record-keeping.### Journal Entry Worksheet:- The worksheet provides a structured format to document each financial entry. By adhering to these structured **Title: Accounting Journal Entry Exercise****Introduction:**This exercise is designed to help students understand the process of recording journal entries in accounting. By completing this task, students will practice how to document interest payments within a General Journal.**Instructions:**Complete the question by entering your answers in the tabs below. Prepare the journal entries to record the first two interest payments. (Round your intermediate and final answers to the nearest whole dollar.)**Navigation:**1. `Req 1`2. `Req 2A to 2C`3. `Req 3`4. `Req 4`5. `Req 5`---**Journal Entries:****Step-by-Step Guide:**1. **First Interest Payment**: - Refer to the first tab to record the first interest payment.2. **Second Interest Payment**: - Utilize the second tab to document the second interest payment on December 31.**Detailed Explanation (for second interest payment):**- **Journal Entry Worksheet**: - The form includes a space to record the transaction details, ensuring 'debits' are entered before 'credits'. **Example Entry:****Date** | **General Journal** | **Debit** | **Credit**--|--|--|--December 31 | [Account Title] | [Amount] | [Amount]December 31 | [Account Title] | [Amount] | [Amount]*Note: Replace [Account Title] and [Amount] with your specific entries.*---**Conclusion:**By practicing these entries, students will gain essential skills in accurately documenting financial transactions. Please refer to the transaction list for specifics on amounts and account titles.**Tip:**Always double-check your entries to ensure debits and credits are balanced accordingly.**End of Exercise**

Solution 1: Journal Entries - Hillside Date Particulars Debit Credit 1-Jan-21 Cash…

Hillside issues $4,000,000 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 $3,456,448. Required: - Prepare the January 1 journal entry to record the bonds' issuance. (a) For each semiannual period, complete the table below to calculate the cash payment. (b) For each semiannual period, complete the table below to calculate the straight-line discount amortization. (c) For each semiannual period, complete the table below to calculate the bond interest expense. . Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. . 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.

Hillside issues $4,000,000 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 $3,456,448. Required: - Prepare the January 1 journal entry to record the bonds' issuance. (a) For each semiannual period, complete the table below to calculate the cash payment. (b) For each semiannual period, complete the table below to calculate the straight-line discount amortization. (c) For each semiannual period, complete the table below to calculate the bond interest expense. . Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. . 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On the first day of the fiscal year, a company issues an $565,000, 9%, 5-year bond that pays semiannual interest of $25,425 ($565,000 x 9% x 1/2), receiving cash of $531,100. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method. If an amount box does not require an entry, leave it blank. Interest Expense Discount on Bonds Payable Cash
Novak corp. Issued $417,000,11%, 15 year bond on december 31 2021 for $404,490. Interest is payable annually on december 31.novak uses the straight line method to amortize bond or discount prepare the journal entry to record the issuance of the book
On January 1, 2021, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Cash Effective Increase in Outstanding Payment Payment Interest Balance Balance 5,802,315 1 332,000 348,139 16,139 5,818,454 2 332,000 349,107 17,107 5,835,561 3 332,000 350,134 18,134…
Volunteer Inc. issued bonds with a $550,000 face value, 12% interest rate, and a 4-year term on July 1, 2018 and received $600,000. Interest is payable annually. The premium is amortized using the straight-line method. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of premium D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of premium Prepare journal entries for the above transactions. If an amount box does not require an entry, leave it blank. A. July 1, 2018 B. June 30, 2019 C. June 30, 2019 D. June 30, 2020 E. June 30, 2020
On January 1, 2021, Dominguez Company issues 7-year bonds with a face value of $10,000,000 and a stated annual interest rate of 4%. The bonds pay interest semiannually on June 30 and December 31. The market rate of interest is 5%, and the company receives cash proceeds of $9,415,454 when the bonds are issued. a) Provide the journal entry that Dominguez will make to record the second bond interest payment on December 31, 2021. b) Provide the journal entry that Dominguez will make to record the principal payment of $10,000,000 on December 31, 2030.
[The following information applies to the questions displayed below.] Hillside issues $4,000,000 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 $3,456,448. 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 Prepare the…
Madison Corporation is authorized to issue $570,000 of 5-year bonds dated June 30, 2019, with a stated rate of interest of 11%. Interest on the bonds is payable semiannually, and the bonds are sold on June 30, 2019. Required: Determine the proceeds that the company will receive if it sells the following: (Click here to access the tables to use with this exercise and round your answers to two decimal places, if necessary.) 1. The bonds to yield 12% $fill in the blank 1 2. The bonds to yield 10% $fill in the blank 2
On the first day of the fiscal year, a company issues a $980,000, 8%, 5-year bond that pays semiannual interest of $39,200 ($980,000 x 8% x 1/2), receiving cash of $884,174. Journalize the entry for the issuance of the bonds. If an amount box does not require an entry, leave it blank.
On July 1, 2018, ABC Co. issued $6,000,000, 6%, 4-year bonds. The bonds were sold to yield an effective-interest rate of 8%. Interest is paid semiannually on July 1 and January 01. The company uses the effective-interest method of amortization. Required: For ABC Co. answer the following independent requirements: JORARE STON a. Prepare the necessary journal entry on July 1, 2018. b. Assume that the accounting date for ABC Co. is December 31, prepare journal entry on December 31, 2018. cessary c. Assume that the bond was issued on September 30, 2018, prepare the journal entry on January 01, 2019. d. Assume that the accounting date for ABC Corporation is November 30, prepare the journal entry on November 30, 2018.
On the first day of the fiscal year, a company issues an $314,000, 6%, 5-year bond that pays semiannual interest of $9,420 ($314,000 x 6% x 1/2), receiving cash of $295,200. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method. If an amount box does not require an entry, leave it blank.
On the first day of the fiscal year, a company issues an $416,000, 10%, 5-year bond that pays semiannual interest of $20,800 ($416,000 x 10 % x 1/2), receiving cash of $391,000. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method. If an amount box does not require an entry, leave it blank. BD
Haley Inc. issued $350,000, 8% bonds on August 1, 2021. Interest is payable semi-annually on February 1 and August 1. The bonds mature on August 1, 2025. At the time of issuance, similar bonds were trading at 9%. Haley Inc. has a year-end of December 31. Required: Create a bond amortization schedule for the term of the bond. Round amounts to the nearest dollar. Prepare all required journal entries for 2021 and 2022 (including the issuance of the bonds). Round all amounts to the nearest dollar.