1 | ||||||||
Date | General Journal | Debit | Credit | |||||
Jan 01, 2019 | Cash | 3,671,990 | ||||||
Premium on bonds payable | 671,990 | |||||||
Bonds payable | 3,000,000 | |||||||
2a | ||||||||
Par (maturity) value | Annual Rate | Year | Semiannual cash interest payment | |||||
$3,000,000 | x | 6% | x | 6/12 | = | $90,000 | ||
b | ||||||||
Bonds price | Par (maturity) value | Premium on Bonds Payable | Semiannual periods | Straight-line premium amortization | ||||
$3,671,990 | - | $3,000,000 | = | $671,990 | ÷ | 30 | = | $22,400 |
c | ||||||||
Semiannual cash payment | Premium amortization | Bond interest expense | ||||||
$90,000 | - | $22,400 | = | $67,600 | ||||
3 | ||||||||
Total bond interest expense over life of bonds: | ||||||||
Amount repaid: | ||||||||
30 | payments of | $90,000 | 2700000 | |||||
Par value at maturity | 3,000,000 | |||||||
Total repaid | 5,700,000 | |||||||
Less amount borrowed | 3,671,990 | |||||||
Total bond interest expense | 2,028,010 | |||||||
4 | ||||||||
Semiannual Period-End | Unamortized Premium | Carrying Value | ||||||
1/1/2019 | $671,990 | $3,671,990 | ||||||
6/30/2019 | 649,590 | $3,649,590 | ||||||
12/31/2019 | 627,190 | $3,627,190 | ||||||
6/30/2020 | 604,790 | $3,604,790 | ||||||
12/31/2020 | 582,390 | $3,582,390 | ||||||
Date | General Journal | Debit | Credit | |||||
30-Jun-19 | Bond interest expense | 67,600 | ||||||
Premium on bonds payable | 22400 | |||||||
Cash | 90,000 | |||||||
31-Dec-19 | Bond interest expense | 67,600 | ||||||
Premium on bonds payable | 22400 | |||||||
Cash | 90,000 |
Hillside issues $3,000,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest semiannually on...
3 Hillside issues $3,000,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 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...
Hillside issues $2,900,000 of 9%, 15 year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31 The bonds are issued at a price of $3,549,590 Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2a) 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 21c) For each semiannual period, complete the...
Hillside issues $1,900,000 of 5%, 15-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,641,812. 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...
Hillside issues $1,500,000 of 6%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,835,994. Required: 1. Prepare the January 1, 2017, journal entry to record the bonds' issuance. 21a) For each semiannual period, complete the table below to calculate the cash payment. 2b) For each semiannual period, complete the table below to calculate the straight-line premium amortization 21c) For each semiannual period, complete the...
Hillside issues $1,000,000 of 6%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,223,995. Required: 1. Prepare the January 1, 2017, 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...
Hillside issues $1800,000 of 7% 15 -year bonds dated January 1, 2019. that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,555,401 Required: 1. Prepare the January 1journal entry to record the bonds issuance 2a) For each semiannual period, complete the table below to calculate the cash payment 2b) For each semiannual period, complete the table below to calculate the straight-line discount amortization 2) For each semiannual period, complete the table...
Hillside issues $1,500,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,835,994. 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. 2C) For each semiannual period, complete the table...
Hillside issues $2,600,000 of 5%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,182,390 Required: 1. Prepare the January 1, 2017, journal entry to record the bonds' issuance. 2a) 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. 2c) For each semiannual period, complete the...
Hillside issues $2,900,000 of 9%, 15-year bonds dated January 1, 2017 that pay interest semiannually on June 30 and December 31 The bonds are issued at a price of $3,549,590. Required: 1. Prepare the January 1, 2017, 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...
Hillside issues $2,600,000 of 5%, 15-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31 The bonds are issued at a price of $3,182,390. Required: 1. Prepare the January 1, 2017, 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...