Question

SHOW ME HOW 10-year bond that pays semiannual interest of $150,000 ($5.000.000 070 92 year), Tec ing cash of $5,000,000. Journalize the entries to record first interest payment on June 30, and (C) the payment o ournalize the entries to record (A) the issuance of the bonds, e , and (C) the payment of the principal on the maturity year), receiv- onds, (B) the e maturity date Obj. 2 BE 11-2 Issuing bonds at a discount On the first day of the fiscal year, a company issues a $2,500, fiscal year, a company issues a $2,500,000, 4%, five-year bond that semiannual interest of $50,000 ($2,500,000 X 4% x V), receiving con eceiving cash of $2,400,000. Journalize the bond issuance. SHOW ME HOW BE 11-3 Discount amortization Obj. 2 Using the bond from Basic Exercise 11-2, journalize the first interest payment and the amorti- zation of the related bond discount. SHOW ME HOW BE 11-4 Issuing bonds at a premium Obj. 2 On the first day of the fiscal year, a company issues an $7,500,000, 8%, five-year bond that pays semiannual interest of $300,000 ($7,500,000 x 8% x 1), receiving cash of $7,740,000 Journalize the bond issuance. SHOW ME HOW

do these please can you also use formulas

Answer 1

Ans 11-2 Journal Entry Account Title Cash Discount on Bond Payable Bond Payable (To record issuance of bond) Credit Debit $2,400,000 $100,000 $2,500,000 Ans 11-3 In straight line amortization, the premium received or discount given on issue of bond is amortized over the bond period maturity on straight line basis. Formula is (Discount / Premium Amount) divided by bond period Discount on Bond Payable Maturity period Coupon payment frequency $100,000 2 $10,000 Discount Amortisation [$100000/(5 x 2)] Credit Account Title Debit Interest Expesne Discount on Bond Payable Cash (To record interest expense) $60,000 $10,000 $50,000 Ans 11-4 Journal Entry Account Title Cash Premium on Bond Payable Bond Payable (To record issuance of bond) Debit $7,740,000 Credit $240,000 $7,500,000