Question

January 1, 2018, Broad year bonds with a par vi pay semi-annually. The c. issued 5%, 3- and the bonds selling pri a) Provide the journ ad Rock Road, Inc." value of $6,500,000 00,000. The bonds 6.5% et rate of interest is 6.3 8 price was $5,800,000 for the bond issuance. b) Provide the journal de the journal entry for the first interest payment on June 30, 2018. C) Provide the journal entry for the last interest payment on December 31, 2020 and the retire of the bonds. Please make this in two journal

Answer 1

(6) Interst Payment Entry Pug & 1 od 5% for 3 year 0.86383 PV of $1 at 6.5% for 3 years 0.82785 PV of $1 at 2.5t for to your 0.86229 PV of $1 at 3.25 for you. 0.82539 Pv of an annuity of $1 at st fox 3 you 2.7234 PV of an aunity of $ 1 at 65% for 3 year 2.64847 omawili alat 2.. or cyem S.SOBIR PV of an annuty 41 at 3.251. fors you 5.37259 Bond Interest Exp . Dr Discount on Bond Payafah for (261,919/6) Cash 236.SO,ODD X SIX 6'month /R manta) final Interest Endry 206,153 43,653 162,50 (6 Dec 31, 2010 Bond Interest Exp Discoudon Bond Payable Cash 2,06, 153 43,683 162,50D 6/30 12/31 /2012/22 /303/31 132 162,500 1,67,500 1,62.500 16,500 16,500 162,500 6,500 on $ 162,500 x S. 37259_ Covom amitte $1 at 3.25%-101 $ 873,046 6 yeon @ $6,500, oro X 0.82539 (Pug & 1 at 3-25 for 6 you) $ 5,369,035 Total = 6,238,08) on Maturity Bond Cash Payable cor 6,500,000 6, soo, ooo by5.00, Borrower Entry for Issuance Cash Al Discount on Bond Bond puyable Dr Dr. to 6,238,082 261,919 6,800,000