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Required 1. Joumaloe the entry to record the amount of cash proceeds from the assuance of he bonds. 2 Joumaloe he entres to record he folong a The frst semannual nterest payment on December 21, 20v1, and the amortizaton of the bond discount using the nterest method (Round t the nearest dolar) The nterest payment on Ane 30. 2012, and he amortcaton of he bond dscount uang he nterest method Round to me nearest daar) 3. Delermne the total terest expense for 20Y1. "Reler to the Chart of Accounts for exact wording of account tiles

Required 1. Joumaloe the entry to record the amount of cash proceeds from the assuance of he bonds. 2 Joumaloe he entres to record he folong a The frst semannual nterest payment on December 21, 20v1, and the amortizaton of the bond discount using the nterest method (Round t the nearest dolar) The nterest payment on Ane 30. 2012, and he amortcaton of he bond dscount uang he nterest method Round to me nearest daar) 3. Delermne the total terest expense for 20Y1. "Reler to the Chart of Accounts for exact wording of account tiles

FINANCIAL ACCOUNTING
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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I need help figuring out the Interest Expense and Discount on Bonds Payable amounts for June 30.  Attached are the instructions and results I have so far.  I believe the answer to the June 30 will be Interest Expense = $1,494,934 and Discount on Bonds = $94,934 but I'm not sure how to get the figures.  Can you please help?

Instructions On July 1, 20Y1, Danzer Industries nc issued 540,000,000 of 10-year, 7% bonds at a market (effective) rterest rate of 8%, recelving cash of $37,282,062. nterest on the bonds Is payatle semiannualy on December 31 and June 30 The fiscal year of the company is the calendar year. Required 1. Journalze me entry to record the amount of cash proceeds from the issuance of he bonds." 2. Joumalze he entres to record me foloang a The frst semianvusl nterest payment on December 31, 20Y1, and the amortization of the bond discount, using the interest method. (Round to the nearest dolar) D The mnterest payment on June 30, 20Y2, and the amortzaton of the bond discount, uang the aterest memod (Round to he nearest dolr) 3. Determine the totar interest expense or 20OY1. *Reler to the Chat of Accounts for exact wording of account hiles Journal Shaded ces he foodback 1and 2 Jomale he enws to record the Parsactons. Mound to the nearest dotar. Peer to the Chart of Accounts for eract wodng of account es BAGE JOURNAL Scare: 75/75 DESCRPTON POST RE DEIT CREDIT ASETS LIABLITE EQIt MI Cah SZ28206200 Discount en Bonds Payable Bonds Payable 40.000,00.00 Der. 31 nterest Expemse 149L8200 Csh L400,000.00 Discsurt on Bands Payable 91,282.00 Ponts 14/14 RAGE 19 JOURNAL Score: 33/37 DATE DESCRPTION POST. REK DEIT CREDIT ASSETS LIABLITIES Jun. 30 hterest Experse 1491282.00 Cash 1.400000.00 Discnurt on Bonds Payatle 91282.00 Points 624/7 Fnal Qumon Shadd ca a Detemine the oali iteredt pense tor 20vs $1,1, Ports 1/1 201 et epenan is the amout detedin a
Transcribed Image Text:Instructions On July 1, 20Y1, Danzer Industries nc issued 540,000,000 of 10-year, 7% bonds at a market (effective) rterest rate of 8%, recelving cash of $37,282,062. nterest on the bonds Is payatle semiannualy on December 31 and June 30 The fiscal year of the company is the calendar year. Required 1. Journalze me entry to record the amount of cash proceeds from the issuance of he bonds." 2. Joumalze he entres to record me foloang a The frst semianvusl nterest payment on December 31, 20Y1, and the amortization of the bond discount, using the interest method. (Round to the nearest dolar) D The mnterest payment on June 30, 20Y2, and the amortzaton of the bond discount, uang the aterest memod (Round to he nearest dolr) 3. Determine the totar interest expense or 20OY1. *Reler to the Chat of Accounts for exact wording of account hiles Journal Shaded ces he foodback 1and 2 Jomale he enws to record the Parsactons. Mound to the nearest dotar. Peer to the Chart of Accounts for eract wodng of account es BAGE JOURNAL Scare: 75/75 DESCRPTON POST RE DEIT CREDIT ASETS LIABLITE EQIt MI Cah SZ28206200 Discount en Bonds Payable Bonds Payable 40.000,00.00 Der. 31 nterest Expemse 149L8200 Csh L400,000.00 Discsurt on Bands Payable 91,282.00 Ponts 14/14 RAGE 19 JOURNAL Score: 33/37 DATE DESCRPTION POST. REK DEIT CREDIT ASSETS LIABLITIES Jun. 30 hterest Experse 1491282.00 Cash 1.400000.00 Discnurt on Bonds Payatle 91282.00 Points 624/7 Fnal Qumon Shadd ca a Detemine the oali iteredt pense tor 20vs $1,1, Ports 1/1 201 et epenan is the amout detedin a
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