The bonds are issued at a price of $3,671,990.Required:1. Prepare the January 1 journal entry to record the bonds' issuance.2(a) For each semiannual period, complete the table below to calculate the cash payment.2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization.2(c) For each semiannual period, complete the table below to calculate the bond interest expense.3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life.4. Prepare the first two years of a straight-line amortization table.5. Prepare the journal entries to record the first two interest payments.Complete this question by entering your answers in the tabs below.2(a)2(b)Req 12(c)For each semiannual period, compute (a) the cash payment, (b) the straight-line premium amortization, and (c) the bond interest expense. (Round your finalanswers to the nearest whole dollar.)Req 2A to 2CPar (maturity) value$$$3,000,000 *Bond price3,671,990Semiannual cashpaymentReq 390,000Req 4Annual Rate$6%Par (maturityvalue)3,000,000PremiumamortizationX=Req 5=Year6/12 =Premium onBonds PayableBond interestexpense< Req 1Semiannual cashinterest payment$90,000Semiannual periodsReq 3 >30 =Straight-line premiumamortization Required information[The following information applies to the questions displayed below.]Hillside issues $3,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 andDecember 31.The bonds are issued at a price of $3,671,990.Required:1. Prepare the January 1 journal entry to record the bonds' issuance.2(a) For each semiannual period, complete the table below to calculate the cash payment.2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization.2(c) For each semiannual period, complete the table below to calculate the bond interest expense.3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life.4. Prepare the first two years of a straight-line amortization table.5. Prepare the journal entries to record the first two interest payments.Complete this question by entering your answers in the tabs below.Req 1Req 2A to 2CView transaction listNo1Req 3Prepare the January 1 journal entry to record the bonds' issuance.DateJanuary 01Req 4View journal entry worksheetCashReq 5General JournalDebit3,671,990CreditX

When issue price of bonds is mote than face value of bonds then these are issued at a Premium.…

The bonds are issued at a price of $3,671,990. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments.

The bonds are issued at a price of $3,671,990. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments.

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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How to calculate the issue price of the bonds with normal calculator?
[The following information applies to the questions displayed below.] Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,456,448. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below. Req 1 Req 2A to 2C Req 3 Req 4 Req 5 Prepare the…
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