Question

2. If the market interest rate is 8%, the bonds will issue at $503,306. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record the bond issue Note: Enter debits before credits. General Journal Credit Date Debit January 01, 2018 Record entry Clear entry View general journal

Answer 1

Amortization Sechedule Interest Discount Cash Paid Expense amortized Carrying Value Date at Issue Jun-30 Dec-31 18900 18900 20132 20182 1232 1282 503306 504538 505820

Issue Entry 1. Record the Bond Issue Date General Journal Debit Credit 01-01-2018 Cash 503306 Discount on Bonds Payable 36694 Bonds Payable 540000 Record the issue of the Bond with Discount Journal entris for interest Payment Record the interest payment and amotization on June 30 1st First Year Date General Journal Debit Credit 30-06-2018 Interest Expenses 20132 Discount on Bonds Payable 1232 Cash 18900 Record the interest Expense and amortization of Discount 3. Record theinterest and amotization on Dec 31, First Year Date General Journal Debit Credit 31/6/2018 Interest Expenses 20182 Discount on Bonds Payable 1282 Cash 18900 Record the interest Expense and amortization of Discount