Virginia Vista Company has 4%, 10-year bonds payable that mature on June 30, 2028. The bonds are issued on June 30, 2018, and Virginia Vista pays interest each June 30 and December 31. Read the requirements. Requirement 1. Will the bonds be issued at face value, at a premium, or at a discount if the market interest rate on the date of issuance is 2%? If the market interest rate is 6%? If the market interest rate is 2%, the bonds will be issued at If the market interest rate is 6%, the bonds will be issued at Requirement 2. Virginia Vista issued $400,000 of the bonds at 89. Round all calculations to the nearest dollar. a. Record issuance of the bonds on June 30, 2018. (Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest whole dollar.) Date Accounts and Explanation Debit Credit 2018 (a) Jun. 30 b. Record the payment of interest and amortization of the discount on December 31, 2018. Use the straight-line amortization method. (Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest whole dollar.)
Virginia Vista Company has 4%, 10-year bonds payable that mature on June 30, 2028. The bonds are issued on June 30, 2018, and Virginia Vista pays interest each June 30 and December 31. Read the requirements. Requirement 1. Will the bonds be issued at face value, at a premium, or at a discount if the market interest rate on the date of issuance is 2%? If the market interest rate is 6%? If the market interest rate is 2%, the bonds will be issued at If the market interest rate is 6%, the bonds will be issued at Requirement 2. Virginia Vista issued $400,000 of the bonds at 89. Round all calculations to the nearest dollar. a. Record issuance of the bonds on June 30, 2018. (Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest whole dollar.) Date Accounts and Explanation Debit Credit 2018 (a) Jun. 30 b. Record the payment of interest and amortization of the discount on December 31, 2018. Use the straight-line amortization method. (Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest whole dollar.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Virginia Vista Company has 4%, 10-year bonds payable that mature on June 30, 2028. The bonds are issued on June 30, 2018, and Virginia Vista pays interest each June 30 and December 31.
Read the requirements.
Requirement 1. Will the bonds be issued at face value, at a premium, or at a discount if the market interest rate on the date of issuance is 2%? If the market interest rate is 6%?
If the market interest rate is 2%, the bonds will be issued at
If the market interest rate is 6%, the bonds will be issued at
Requirement 2. Virginia Vista issued $400,000 of the bonds at 89. Round all calculations to the nearest dollar.
a. Record issuance of the bonds on June 30, 2018. (Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest whole dollar.)
Date
Accounts and Explanation
Debit
Credit
2018
(a) Jun. 30
b. Record the payment of interest and amortization of the discount on December 31, 2018. Use the straight-line amortization method. (Record debits first, then credits. Select explanations on the last line of the journal entry.
Round your answers to the nearest whole dollar.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd9fa3ade-a60b-422a-aff4-289ae715a220%2Fba7730bc-24fd-4952-8dd1-28ce1d070582%2Fbue5i6o_processed.png&w=3840&q=75)
Transcribed Image Text:Virginia Vista Company has 4%, 10-year bonds payable that mature on June 30, 2028. The bonds are issued on June 30, 2018, and Virginia Vista pays interest each June 30 and December 31.
Read the requirements.
Requirement 1. Will the bonds be issued at face value, at a premium, or at a discount if the market interest rate on the date of issuance is 2%? If the market interest rate is 6%?
If the market interest rate is 2%, the bonds will be issued at
If the market interest rate is 6%, the bonds will be issued at
Requirement 2. Virginia Vista issued $400,000 of the bonds at 89. Round all calculations to the nearest dollar.
a. Record issuance of the bonds on June 30, 2018. (Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest whole dollar.)
Date
Accounts and Explanation
Debit
Credit
2018
(a) Jun. 30
b. Record the payment of interest and amortization of the discount on December 31, 2018. Use the straight-line amortization method. (Record debits first, then credits. Select explanations on the last line of the journal entry.
Round your answers to the nearest whole dollar.)
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