On July 1, 2021, Rehearse Company issued $34,000,000 of 20-year, 12% bonds to finance its operations. The bonds were issued at a market (effective) interest rate of 13%, resulting in Rehearsal Company receiving cash of $31,595,241. Interest is payable semiannualy on 12/31 and 6/30. The company uses the straight-line method to amortize the bond discount. REQUIRED: Journalize the entries to record the following: 07/01/21 - issuance of the bonds 12/31/21 - the first semiannual interest payment, including amortization of the bond discount. Round to the nearest dollar. 06/30/22 - the second semiannual interest payment, including amortization of the bond discount. Round to the nearest dollar
On July 1, 2021, Rehearse Company issued $34,000,000 of 20-year, 12% bonds to finance its operations. The bonds were issued at a market (effective) interest rate of 13%, resulting in Rehearsal Company receiving cash of $31,595,241. Interest is payable semiannualy on 12/31 and 6/30. The company uses the straight-line method to amortize the bond discount. REQUIRED: Journalize the entries to record the following: 07/01/21 - issuance of the bonds 12/31/21 - the first semiannual interest payment, including amortization of the bond discount. Round to the nearest dollar. 06/30/22 - the second semiannual interest payment, including amortization of the bond discount. Round to the nearest dollar
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![On July 1, 2021, Rehearse Company issued $34,000,000 of 20-year, 12% bonds
to finance its operations. The bonds were issued at a market (effective) interest
rate of 13%, resulting in Rehearsal Company receiving cash of $31,595,241.
Interest is payable semiannualy on 12/31 and 6/30. The company uses the
straight-line method to amortize the bond discount. REQUIRED: Journalize the
entries to record the following:
07/01/21 - issuance of the bonds
12/31/21 - the first semiannual interest payment, including amortization of the
bond discount. Round to the nearest dollar.
06/30/22 - the second semiannual interest payment, including amortization of
the bond discount. Round to the nearest dollar](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b36df39-ab49-4ea5-ae52-81cd20e2fcba%2Fcc016dbf-0f8a-4796-8f42-cc43e74853a8%2F47fs9ta_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On July 1, 2021, Rehearse Company issued $34,000,000 of 20-year, 12% bonds
to finance its operations. The bonds were issued at a market (effective) interest
rate of 13%, resulting in Rehearsal Company receiving cash of $31,595,241.
Interest is payable semiannualy on 12/31 and 6/30. The company uses the
straight-line method to amortize the bond discount. REQUIRED: Journalize the
entries to record the following:
07/01/21 - issuance of the bonds
12/31/21 - the first semiannual interest payment, including amortization of the
bond discount. Round to the nearest dollar.
06/30/22 - the second semiannual interest payment, including amortization of
the bond discount. Round to the nearest dollar
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