Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Required 4Required 5Prepare the journal entry to record their issuance by National on January 1, 2021. (If no entry is required for a transaction/event, select"No journal entry required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.)View transaction listJournal entry worksheet1Record the issuance of the bonds on January 1, 2021.Note: Enter debits before credits.DateGeneral JournalDebitCreditJanuary 01, 2021Required 1Required 2Required 3Required 4Required 5Prepare an amortization schedule that determines interest at the effective rate each period. (Round intermediate calculationsand final answers to the nearest whole dollar.)SemiannualInterestBond InterestDiscountAmortizationCarrying ValueCash InterestExpensePeriod-End01/01/202106/30/202112/31/202106/30/202212/31/202206/30/202312/31/202306/30/202412/31/2024Total< Required 2Required 4 >Required 1Required 2Required 3Required 4Required 5Prepare the journal entry to record interest on June 30, 2021. (If no entry is required for a transaction/event, select "No journal entryrequired" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.)View transaction listJournal entry worksheet1Record the interest expense on June 30, 2021.Note: Enter debits before credits.DateGeneral JournalDebitCreditJune 30, 2021Required 1Required 2Required 3Required 4Required 5Prepare the appropriate journal entries at maturity on December 31, 2024. (If no entry is required for a transaction/event, select "Nojournal entry required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.)View transaction listJournal entry worksheet12>Record the interest expense on December 31, 2024.Note: Enter debits before credits.DateGeneral JournalDebitCreditDecember 31, 2024 National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $900,000 on January 1, 2021. The bonds mature onDecember 31, 2024 (4 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tablesprovided.)Required:1. Determine the price of the bonds at January 1, 2021.2. Prepare the journal entry to record their issuance by National on January 1, 2021.3. Prepare an amortization schedule that determines interest at the effective rate each period.4. Prepare the journal entry to record interest on June 30, 2021.5. Prepare the appropriate journal entries at maturity on December 31, 2024.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Required 4Required 5Determine the price of the bonds at January 1, 2021. (Round final answers to the nearest whole dollar.)Table values are based on:n =i =Cash FlowAmountPresent ValueInterestPrincipalPrice of bondsRequired 1Required 2

National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $900,000 on January 1, 2021. The bonds mature on December 31, 2024 (4 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds at January 1, 2021. 2. Prepare the journal entry to record their issuance by National on January 1, 2021. 3. Prepare an amortization schedule that determines interest at the effective rate each period.

National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $900,000 on January 1, 2021. The bonds mature on December 31, 2024 (4 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds at January 1, 2021. 2. Prepare the journal entry to record their issuance by National on January 1, 2021. 3. Prepare an amortization schedule that determines interest at the effective rate each period.

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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National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $500,000 on January 1, 2018.The bonds mature on December 31, 2021 (4 years). For bonds of similar risk and maturity the market yield was10%. Interest is paid semiannually on June 30 and December 31.Required:1. Determine the price of the bonds at January 1, 2018.2. Prepare the journal entry to record their issuance by National on January 1, 2018.3. Prepare an amortization schedule that determines interest at the effective rate each period.4. Prepare the journal entry to record interest on June 30, 2018.5. Prepare the appropriate journal entries at maturity on December 31, 2021.
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