< On December 31, 2024, when the market interest rate is 12%, McCann Realty issues $900,000 of 13 25 %, 10-year bonds payable The bonds pay interest semiannually. McCann Realty received $964,699 in cash at issuance. Requirements 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar) 2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments Requirement 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar) Premium Carrying Amortized Amount 12/31/2024 06/30/2025 12/31/2025 Cash Paid Date 2024 Dec. 31 Interest Expense Requirement 2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments, (Record debits first, then credits Select explanations on the last line of the journal entry Round your answers to the nearest whole dollar) Start by journalizing the issuance of the bonds on December 31, 2024. Accounts and Explanation Cash Premium on Bonds Payable Bonds Payable (ID Debit Credit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On December 31, 2024, when the market interest rate is 12%, McCann Realty issues $900,000 of 13.25%, 10-year bonds payable. The bonds pay interest semiannually. McCann Realty received $964,699 in
cash at issuance.
Requirements
1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar.)
2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments.
Requirement 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar.)
Carrying
Premium
Amortized
Amount
12/31/2024
06/30/2025
12/31/2025
Requirement 2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments. (Record debits first, then credits. Select explanations on the last
line of the journal entry. Round your answers to the nearest whole dollar.)
Start by journalizing the issuance of the bonds on December 31, 2024.
Accounts and Explanation
Date
Interest
Cash Paid Expense
2024
Dec. 31
Cash
Premium on Bonds Payable
Bonds Payable
Debit
Credit
Transcribed Image Text:K On December 31, 2024, when the market interest rate is 12%, McCann Realty issues $900,000 of 13.25%, 10-year bonds payable. The bonds pay interest semiannually. McCann Realty received $964,699 in cash at issuance. Requirements 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar.) 2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments. Requirement 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar.) Carrying Premium Amortized Amount 12/31/2024 06/30/2025 12/31/2025 Requirement 2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments. (Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest whole dollar.) Start by journalizing the issuance of the bonds on December 31, 2024. Accounts and Explanation Date Interest Cash Paid Expense 2024 Dec. 31 Cash Premium on Bonds Payable Bonds Payable Debit Credit
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