Problem 10.5A (Static) Bond Interest (Bonds Issued at Face Value) (LO10-5) Green Mountain Power Company obtained authorization to issue 20-year bonds with a face value of $10 million. The bonds are dated May 1, 2021, and have a contract rate of interest of 10 percent. They pay interest on November 1 and May 1 The bonds were issued on August 1, 2021, at 100 plus three months' accrued interest Required: Prepare the necessary journal entries in general journal form on the following a. August 1, 2021, to record the issuance of the bonds. b. November 1, 2021, to record the first semiannual interest payment on the bond issue c. December 31, 2021, to record interest expense accrued through year-end (Round to the nearest dollar) d. May 1, 2022, to record the second semiannual interest payment. (Round to the nearest dollar) e. What was the prevailing market rate of interest on the date that the bonds were issued? (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your answers to the nearest dollar amount. Enter your answer in dollars not millions.) Complete this question by entering your answers in the tabs below. Reg A to D Reg E

Problem 10.5A (Static) Bond Interest (Bonds Issued at Face Value) (LO10-5) Green Mountain Power Company obtained authorization to issue 20-year bonds with a face value of $10 million. The bonds are dated May 1, 2021, and have a contract rate of interest of 10 percent. They pay interest on November 1 and May 1 The bonds were issued on August 1, 2021, at 100 plus three months' accrued interest Required: Prepare the necessary journal entries in general journal form on the following a. August 1, 2021, to record the issuance of the bonds. b. November 1, 2021, to record the first semiannual interest payment on the bond issue c. December 31, 2021, to record interest expense accrued through year-end (Round to the nearest dollar) d. May 1, 2022, to record the second semiannual interest payment. (Round to the nearest dollar) e. What was the prevailing market rate of interest on the date that the bonds were issued? (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round your answers to the nearest dollar amount. Enter your answer in dollars not millions.) Complete this question by entering your answers in the tabs below. Reg A to D Reg E

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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