Legacy issues $620,000 of 9.5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31, They are issued at $571,867 when the market rate is 12%. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 3. Prepare an effective interest amortization table for the bonds' first two years. 4. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below.. Required 1 Required 2 Required 3 Required 4 Prepare an effective interest amortization table for the bonds' first two years. Note: Round your intermediate and final answers to the nearest whole dollar. Semiannual Interest Period-End 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 Cash Interest Paid $ 29,450 29,450 29,450 29,450 Bond Interest Expense Discount Amortization < Required 2 Unamortized Discount $ Required 4 > 48,133 $ Carrying Value 571,867

Legacy issues $620,000 of 9.5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31, They are issued at $571,867 when the market rate is 12%. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 3. Prepare an effective interest amortization table for the bonds' first two years. 4. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below.. Required 1 Required 2 Required 3 Required 4 Prepare an effective interest amortization table for the bonds' first two years. Note: Round your intermediate and final answers to the nearest whole dollar. Semiannual Interest Period-End 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 Cash Interest Paid $ 29,450 29,450 29,450 29,450 Bond Interest Expense Discount Amortization < Required 2 Unamortized Discount $ Required 4 > 48,133 $ Carrying Value 571,867

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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