Question

Homework: Homework Chapter 12 Save < 4 of 5 (0 complete) Score: 0 of 50 pts P12-33A (similar to) HW Score: 0%, 0 of 121 p 15 Question Help Johnny's Hamburgers issued 9%, 10-year bonds payable at 90 on December 31, 2018. At December 31, 2020, Johnny reported the bonds payable as follows: (Click the icon to view the bonds payable.) Johnny's pays semiannual interest each June 30 and December 31. (Assume bonds payable are amortized using the straight-line amortization method.) Read the requirements. Requirement 1. Answer the following questions about Johnny's bonds payable: a. What is the maturity value of the bonds? $ 0 Requirements i Data Table Long-term Liabilities: Bonds Payable 1. Answer the following questions about Johnny's bonds payable: a. What is the maturity value of the bonds? b. What is the carrying amount of the bonds at December 31, 2020? c. What is the semiannual cash interest payment on the bonds? d. How much interest expense should the company record each year? . Record the June 30, 2020, semiannual interest payment and amortization of discount $ 300,000 (24.000) (29.000) $ 2 Less: Discount on Bonds Payable 2

Answer 1

1a) Maturity value = $300000

1a) Carrying value = 300000-24000 = 276000

1c) Semiannual cash interest payment = 300000*9%*6/12 = 13500

1d) Interest expense = 13500+(30000/20) = 15000

2) Journal entry

date	account and explanation	Debit	Credit
June 30	Interest expense	15000
	Discount on bonds payable		1500
	Cash (		13500
	(To record interest)