InstructionsPresent Value TablesTwo present value tables are provided: Present Value of $1 at Compound Interest Due in n Periods and Present Value of Ordinary Annuity of $1 per Period. Usethem as directed in the problem requirements.Present Value of $1 at Compound Interest Due inn PeriodsPeriods3.0%3.5%4.0%4.5%5%5.5%6%6.5%7%10.970870.966180.961540.956940.952380.947870.943400.938970.9345820.942600.933510.924560.915730.907030.898450.890000.881660.873440.915140.901940.889000.876300.863840.851610.839620.827850.8163040.888490.871440.854800.838560.822700.807220.792090.777320.762900.862610.841970.821930.802450.783530.765130.747260.729880.712996.0.837480.813500.790310.767900.746220.725250.704960.685330.666340.785990.759920.734830.710680.687440.665060.643510.622750.81309 ayable TransactionsPresent Value TablesChart of AccountsJournalFinal QuestionsInstructionsO'Halloran Inc. produces and sells outdoor equipment. On July 1, Year 1, O'Halloran Inc. issued $11,300,000 of 10-year, 11% bonds at a market (effective)interest rate of 9%, receiving cash of $12,769,867. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the companyis the calendar year.Required:1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.*2. Journalize the entries to record the following*a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the straight-line method.Round to the nearest dollar.b. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the straight-line method. Round to the nearestdollar.3. Determine the total interest expense for Year 1.

The bonds are issued at premium when market rate is lower than the stated rate of interest.

Answered: Questions Instructions O'Halloran Inc.…

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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