Provide the answers to the following questions.1. What amount of interest expense is reported for 2026? (Round answer to 2 decimal places, e.g. 38,548.25.)Interest expense reported for 2026$CA2. Will the bond interest expense reported in 2026 be the same as, greater than, or less than the amount that would be reported ifthe straight-line method of amortization were used?The bond interest expense reported in 2026 will be3. Determine the total cost of borrowing over the life of the bond. (Round answer to O decimal places, e.g. 38,548.)Total cost of borrowing over the life of the bondLA$the amount that would be reported if the straight-line me4. Will the total bond interest expense for the life of the bond be greater than, the same as, or less than the total interest expenseif the straight-line method of amortization were used?The total bond interest expense for the life of the bond will bethe total interest expense if the straight-line m On June 30, 2025, Donald Martin Company issued $3,270,000.00 face value of 13%, 20-year bonds at $3,516,000.00, a yield of 12%.Martin uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and -December 31.

Face value of bonds= $3,270,000 No of years=20 years interest rate= 13% Yield rate= 12% Cash…

Provide the answers to the following questions. 1. What amount of interest expense is reported for 2026? (Round answer to 2 decimal places, e.g. 38,548.25.) Interest expense reported for 2026 $ 2. Will the bond interest expense reported in 2026 be the same as, greater than, or less than the amount that would be reported if the straight-line method of amortization were used? The bond interest expense reported in 2026 will be 3. Determine the total cost of borrowing over the life of the bond. (Round answer to 0 decimal places, e.g. 38,548.) Total cost of borrowing over the life of the bond $ the amount that would be reported if the straight-line me 4. Will the total bond interest expense for the life of the bond be greater than, the same as, or less than the total interest expense if the straight-line method of amortization were used? The total bond interest expense for the life of the bond will be the total interest expense if the straight-line m

Provide the answers to the following questions. 1. What amount of interest expense is reported for 2026? (Round answer to 2 decimal places, e.g. 38,548.25.) Interest expense reported for 2026 $ 2. Will the bond interest expense reported in 2026 be the same as, greater than, or less than the amount that would be reported if the straight-line method of amortization were used? The bond interest expense reported in 2026 will be 3. Determine the total cost of borrowing over the life of the bond. (Round answer to 0 decimal places, e.g. 38,548.) Total cost of borrowing over the life of the bond $ the amount that would be reported if the straight-line me 4. Will the total bond interest expense for the life of the bond be greater than, the same as, or less than the total interest expense if the straight-line method of amortization were used? The total bond interest expense for the life of the bond will be the total interest expense if the straight-line m

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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Question

On June 30, 2025, Donald Martin Company issued $3,270,000.00 face value of 13%, 20-year bonds at $3,516,000.00, a yield of 12%.
Martin uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and -
December 31.

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I'm trying to figure out what dates I need to use for my journal entries. I have already put July 1 and december 31 in my 2019 journal section and then june 30 for my 2020 section and it keeps telling me I'm wrong I don't get it. My numbers are right just not my dates. Effective Interest Premium Amortization Ex. 14.08 " Prepare the journal entries to record the issue of the bonds on July 1, 2019, and the interest payments on December 31, 2019, and June 30, 2020." Polk Incorporated issued $200,000 of 13% bonds on July 1, 2019, for $206,801.60. The bonds were dated January 1, 2019, pay interest on each June 30 and December 31, are due December 31, 2020, and were issued to yield 12%. Polk uses the effective interest method of amortization. Required: Prepare the journal entries to record the issue of the bonds on July 1, 2019, and the interest payments on December 31, 2019, and June 30, 2020. In addition, prepare a bond interest expense and premium amortization schedule for the bonds…