Required information Problem 9-5B (Algo) Record bond issue and related interest (LO9-5) [The following information applies to the questions displayed below.] Viking Voyager specializes in the design and production of replica Viking boats. On January 1, 2024, the company issues $2,200,000 of 8% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Problem 9-5B (Algo) Part 3 3. If the market interest rate is 7%, the bonds will issue at $2,434,906. Record the bond issue on January 1, 2024, and the first two semiannual interest payments on June 30, 2024, and December 31, 2024. (If no entry is required for a particular transaction/even select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.)
Required information Problem 9-5B (Algo) Record bond issue and related interest (LO9-5) [The following information applies to the questions displayed below.] Viking Voyager specializes in the design and production of replica Viking boats. On January 1, 2024, the company issues $2,200,000 of 8% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Problem 9-5B (Algo) Part 3 3. If the market interest rate is 7%, the bonds will issue at $2,434,906. Record the bond issue on January 1, 2024, and the first two semiannual interest payments on June 30, 2024, and December 31, 2024. (If no entry is required for a particular transaction/even select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required information
Problem 9-5B (Algo) Record bond issue and related interest (LO9-5)
[The following information applies to the questions displayed below.]
Viking Voyager specializes in the design and production of replica Viking boats. On January 1, 2024, the company issues
$2,200,000 of 8% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year.
Problem 9-5B (Algo) Part 3
3. If the market interest rate is 7%, the bonds will issue at $2,434,906. Record the bond issue on January 1, 2024, and the first two
semiannual interest payments on June 30, 2024, and December 31, 2024. (If no entry is required for a particular transaction/event,
select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.)
View transaction list View journal entry worksheet
No
1
2
3
Date
January 01, 2024 Cash
June 30, 2024
December 31,
2024
General Journal
Bonds Payable
Premium on Bonds Payable
Interest Expense
Premium on Bonds Payable
Cash
Interest Expense
Premium on Bonds Payable
Cash
Debit
2,434,906
85,221
Credit
2,200,000
234,906
****](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0086c006-771a-4a18-9964-0eb5ef70a1a2%2Ff2194ea8-4228-4475-9d05-54b434029d12%2Fsh184zj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 9-5B (Algo) Record bond issue and related interest (LO9-5)
[The following information applies to the questions displayed below.]
Viking Voyager specializes in the design and production of replica Viking boats. On January 1, 2024, the company issues
$2,200,000 of 8% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year.
Problem 9-5B (Algo) Part 3
3. If the market interest rate is 7%, the bonds will issue at $2,434,906. Record the bond issue on January 1, 2024, and the first two
semiannual interest payments on June 30, 2024, and December 31, 2024. (If no entry is required for a particular transaction/event,
select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.)
View transaction list View journal entry worksheet
No
1
2
3
Date
January 01, 2024 Cash
June 30, 2024
December 31,
2024
General Journal
Bonds Payable
Premium on Bonds Payable
Interest Expense
Premium on Bonds Payable
Cash
Interest Expense
Premium on Bonds Payable
Cash
Debit
2,434,906
85,221
Credit
2,200,000
234,906
****
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