Show Me How Interest Payments and Interest Expense for Bonds (Straight Line) Swiss Inc. sold 20-year bonds with a total face amount of $362,000 and a stated rate of 7.5%. The bonds sold for $386,000 on January 1, 2024, and pay interest semiannually on June 30 and December 31. Required: 1. Prepare the entry to recognize the sale of the bonds. If an amount box does not require an entry, leave it blank. 2024 Jan. 1 - Select - - Select - - Select - - Select - - Select - - Select - (Record issuance of bonds at premium.) 2. Determine the amount of the semiannual interest payment required by the bonds. Round your answer to the nearest whole dollar and use the same in subsequent calculations. $fill in the blank 90bb6d03c014ff2_1 3. Prepare the journal entry made by Swiss at June 30, 2024, to recognize the interest expense and an interest payment. If an amount box does not require an entry, leave it blank. 2024 June 30 - Select - - Select - - Select - - Select - - Select - - Select - (Record interest expense.)
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Interest Payments and Interest Expense for Bonds (Straight Line)
Swiss Inc. sold 20-year bonds with a total face amount of $362,000 and a stated rate of 7.5%. The bonds sold for $386,000 on January 1, 2024, and pay interest semiannually on June 30 and December 31.
Required:
1. Prepare the entry to recognize the sale of the bonds. If an amount box does not require an entry, leave it blank.
2024 Jan. 1 - Select - - Select - - Select - - Select - - Select - - Select - (Record issuance of bonds at premium.) 2. Determine the amount of the semiannual interest payment required by the bonds. Round your answer to the nearest whole dollar and use the same in subsequent calculations.
$fill in the blank 90bb6d03c014ff2_13. Prepare the
journal entry made by Swiss at June 30, 2024, to recognize the interest expense and an interest payment. If an amount box does not require an entry, leave it blank.2024 June 30 - Select - - Select - - Select - - Select - - Select - - Select - (Record interest expense.) 4. Determine the amount of interest expense for 2024.
$fill in the blank 9215bf002fae06d_15. Conceptual Connection: If Swiss issued bonds with a variable interest rate, would you expect the market rate of interest (i.e., yield) to increase, decrease, or stay the same?
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