Review the following three bonds payable assumptions:1 (Click the icon to view the bond assumptions.)Journalize issuance of the bond and the first semiannual interest payment under each of the three assumptions. Thecompany amortizes bond premium and discount by the effective-interest amortization method. Explanations are notrequired. (Record debits first, then credits. Exclude explanations from any journal entries. Round your final answers tothe nearest whole dollar.)O More Infosemiannually.1. Ten-year bonds payable with face value of $89,000 and stated interest rate of 14%, paidsemiannually. The market rate of interest is 14% at issuance. The present value of thebonds at issuance is $89,000.2. Same bonds payable as in assumption 1, but the market interest rate is 16%. The presentvalue of the bonds at issuance is $80,301.3. Same bonds payable as in assumption 1, but the market interest rate is 12%. The presentvalue of the bonds at issuance is $99,226.PrintDone

A bond is a fixed pay instrument issued to represents to an advance made by a financial specialist…

Journalize issuance of the bond and the first semiannual interest payment under each of the three assumptions. The company amortizes bond premium and discount by the effective-interest amortization method. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries. Round your final answers te the nearest whole dollar.) O More Info - X semiannual 1. Ten-year bonds payable with face value of $89,000 and stated interest rate of 14%, paid semiannually. The market rate of interest is 14% at issuance. The present value of the bonds at issuance is $89,000. 2. Same bonds payable as in assumption 1, but the market interest rate is 16%. The present value of the bonds at issuance is $80,301. 3. Same bonds payable as in assumption 1, but the market interest rate is 12%. The present value of the bonds at issuance is $99,226.

Journalize issuance of the bond and the first semiannual interest payment under each of the three assumptions. The company amortizes bond premium and discount by the effective-interest amortization method. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries. Round your final answers te the nearest whole dollar.) O More Info - X semiannual 1. Ten-year bonds payable with face value of $89,000 and stated interest rate of 14%, paid semiannually. The market rate of interest is 14% at issuance. The present value of the bonds at issuance is $89,000. 2. Same bonds payable as in assumption 1, but the market interest rate is 16%. The present value of the bonds at issuance is $80,301. 3. Same bonds payable as in assumption 1, but the market interest rate is 12%. The present value of the bonds at issuance is $99,226.

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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