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Instructions Chart of Accounts Journal Final Question Instructions On July 1. Year 1, Khatri Industries Inc. issued S48.800.000 of 10-year. 5% bonds at a market (effective) interest rate of 7%, receiving cash of 541.864.544. Interest on the bonds is payable semiannualy on December 31 and June 30. The fiscal year of the company is the calendar year. Required 1. Joumalize the entry to record the amount of caah proceeda from the isauance of the bonds 2. Joumalize he entries to record the following a The firat semiannual intereat payment on December 31, Year 1, and the amortization of the bond discount, using the intereat method Round to the nearest dollar. b. The intereat payment on June 30, Year 2, and the amortization of the bond discount, using the intereat method. Round to the nearest dollar. 3. Determine the total intereat expense for Year 1. "Refer to the chart of accounts for the eact wording of the account soles CNOW joumals do not use ines for joumal explanationa Every line on a jourmal page is used for debit or credit entries. CNOW joumals will automatically indent a credit entry when a credit amount is entered Final Question 3. Determine the total interest expense for Year 1.$

Instructions Chart of Accounts Journal Final Question Instructions On July 1. Year 1, Khatri Industries Inc. issued S48.800.000 of 10-year. 5% bonds at a market (effective) interest rate of 7%, receiving cash of 541.864.544. Interest on the bonds is payable semiannualy on December 31 and June 30. The fiscal year of the company is the calendar year. Required 1. Joumalize the entry to record the amount of caah proceeda from the isauance of the bonds 2. Joumalize he entries to record the following a The firat semiannual intereat payment on December 31, Year 1, and the amortization of the bond discount, using the intereat method Round to the nearest dollar. b. The intereat payment on June 30, Year 2, and the amortization of the bond discount, using the intereat method. Round to the nearest dollar. 3. Determine the total intereat expense for Year 1. "Refer to the chart of accounts for the eact wording of the account soles CNOW joumals do not use ines for joumal explanationa Every line on a jourmal page is used for debit or credit entries. CNOW joumals will automatically indent a credit entry when a credit amount is entered Final Question 3. Determine the total interest expense for Year 1.$

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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Instructions Chart of Accounts Journal Final Question Instructions On July 1. Year 1, Khatri Industries Inc. issued $48,800,000 of 10-year, 5% bonds at a market (effective) interest rate of 7%, receiving cash of $41,884,544. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.* 2. Journalize the entries to record the following:* a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the interest method. Round to the nearest dollar. b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the interest method. Round to the nearest doliar. 3. Determine the total interest expense for Year 1. *Refer to the chart of accounts for the exact wording of the account titles. CNOW jounals do not use lines for journal explanations. Every line on a journai page is used for debit or credit entries. CNOW joumals will automaticaly indent a credit entry when a credit amount is entered. Final Question 3. Determine the total interest expense for Year 1. S
Transcribed Image Text:Instructions Chart of Accounts Journal Final Question Instructions On July 1. Year 1, Khatri Industries Inc. issued $48,800,000 of 10-year, 5% bonds at a market (effective) interest rate of 7%, receiving cash of $41,884,544. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.* 2. Journalize the entries to record the following:* a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the interest method. Round to the nearest dollar. b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the interest method. Round to the nearest doliar. 3. Determine the total interest expense for Year 1. *Refer to the chart of accounts for the exact wording of the account titles. CNOW jounals do not use lines for journal explanations. Every line on a journai page is used for debit or credit entries. CNOW joumals will automaticaly indent a credit entry when a credit amount is entered. Final Question 3. Determine the total interest expense for Year 1. S
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