Question

Help on question 2B

Instructions On July 1, 20Y1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market (effective) interest rate of 8%, receiving cash of $37,282,062. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.* 2. Journalize the entries to record the following:* a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar.) b. The interest payment on June 30, 20Y2, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar.) 3. Determine the total interest expense for 20Y1. *Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

on bonds payablo= 44000,000 37,282,02 $2,, 38 DiSount 11 Amadizalion 2(B) disuount of 2117, 938 ( Jeu's sentanally) 20 13 5,897 Acont Title Debit Date Credit Interest expense Cash C ojo00,000x % x Dis ovnt on bonds 1,53 5,817 Jun 30 $14,00,000 135,817