Question

3. If the market interest rate is 6%, the bonds will issue at $580,169. 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 3 Record the bond issue. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2018 Record entry Clear entry View general journal

Answer 1

Amortization Sechedule Carrying Interest Premium Value Cash Paid Amortized Date Expense January 1 2018 June 30,2018 580169 0 0 0 17405 1495 578674 18900 December 31,2017 1540 18900 17360 577134

Issue Entry 1. Record the Bond Issue General Journal Debit Credit Date January 1 2018 Cash 580169 Premium on Bonds Payable Bonds Payable 40169 540000 Record the Issue of the Bond with Premium Record the interest Payment 2. Record the interest Paymnet and amotization General Journal Debit Credit Date June 30,2018 Interest Expenses Premium on Bonds Payable 17405 1495 Cash 18900 Record the interest Paymnet and amotization 3. Record interest Paymnet and amotization General Journal Interest Expenses Premium on Bonds Payable Credit Debit Date Decmeber 31, 2018 17360 1540 Cash 18900 Record the interest Paymnet amotization