Question

Question 3 (6 points) On June 30, 2016, Alpha Corporation issued $200,000 of 10% ten-year bonds at 103 on its semiannual interest date. Alpha uses the straight-line method for amortization. Use this information to determine the carrying value of this bond issue after adjusting entries have been made on June 30, 2019? Round your answer to the nearest whole dollar. Question 4 (6 points) On August 1, 2016, Alpha Company entered into a capital lease, and correctly recorded the leased asset, and related obligation at $50,000. The annual interest rate implicit in the lease was 6%, and the first lease payment of $2,000 is due at the end of each month of the lease. Use this information to prepare the General Journal entry (without explanation) for the August 31, 2016 monthly lease payment. If no entry is required then write "No Entry Required." (Round your answer to the nearest whole dollar.) D oo - Format B IV - General Journal:

Answer 1

Question 3

Carrying Value as on June 30, 2019 = $204,200

Working:

Bonds Payable	$         200,000.00
Premium on Bonds Payable (200000/100*103)	$             6,000.00
Less: Amortization Expenses for 3 years (6000/10*3)	$             1,800.00
Balance as on June 30, 2019	$         204,200.00

Question 4

Date	Account Title	Debit	Credit
31/8/2016	Interest Expense ($50,000*6%/12)	$       250.00
	Obligation under capital lease (2000-250)	$    1,750.00
	Cash		$   2,000.00
	(To record lease payment)