### Journal Entry Worksheet Guide#### OverviewThis guide provides instructions on how to complete the journal entries for recording the first two interest payments. It will help you understand how to properly enter debits and credits in a journal entry format.#### Instructions1. **Navigate Through the Tabs:** Begin by selecting the appropriate requirement tab (Req 1 to Req 5) at the top of the screen. Each tab may represent a different requirement or step in the assignment.2. **Recording Journal Entries:** Focus on properly documenting your journal entries as specified for the first interest payment.#### Journal Entry Worksheet**Step-by-Step Procedure:**1. **Task:** Record the first interest payment on June 30.2. **Note:** Ensure that debits are entered before credits.**Journal Entry Table:**| Date | General Journal | Debit | Credit ||--------|----------------------|-------|--------|| June 30| | | || | | | || | | | || | | | || | | | |1. **Enter the Date:** Start by entering "June 30" under the Date column.2. **General Journal Entries:** Fill in the relevant accounts and amounts in the General Journal column followed by the corresponding Debit and Credit amounts in their respective columns.#### Example EntryFor an interest payment:- **Debit:** Interest Expense (Record the interest cost)- **Credit:** Cash/Bank (Record the outflow of cash)**Example Table:**| Date | General Journal | Debit | Credit ||--------|----------------------|-------|--------|| June 30| Interest Expense | XXX | || | Cash/Bank | | XXX || | | | || | | | || | | | |Make sure to replace "XXX" with the actual amounts.#### Tips:- Double-check all entries for accuracy.- Ensure all numbers are rounded to the nearest whole dollar as specified.#### ConclusionBy following these steps, you can accurately record interest payments in your journal entries. Proper documentation is crucial for maintaining clear and accurate financial records. [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. (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.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 journal entries to record the first two internet payments.** (Round your intermediate and final answers to the nearest whole dollar.)View transaction list**Journal entry worksheet** | | | ||---|---|---|| 1 | | || 2 | | |Record the first interest payment on June 30...

Working Notes: Note: 1 Par (maturity) value Annual Rate Year Semiannual…

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.

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.

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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