Bond discount, entries for bonds payable transactions, interest method of amortizing bond discount On July 1, 20Y1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $40,000,000 of 20-year, 11% bonds at a market (effective) interest rate of 14%, receiving cash of $32,00 Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: For all journal entries, if an amount box does not require an entry, leave it blank. 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds. 20Y1 July 1 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond discount, using the interest method. Round to the nearest dollar. 20Y1 Dec. 31 b. The interest payment on June 30, 20Y2, and the amortization of the bond discount, using the interest method. Round to the nearest dollar. 2012 June 20

Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $8,700,000, 9%, 9-year bond that pays semiannual interest of $391,500 ($8,700,000 × 9% × ½), receiving cash of $7,287,000. Journalize the bond issuance. If an amount box does not require an entry, leave it blank.

Entries for Bonds Payable and Installment Note Transactions The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: Year 1   July 1. Issued $5,110,000 of five-year, 11% callable bonds dated July 1, Year 1, at a market (effective) rate of 13%, receiving cash of $4,742,651. Interest is payable semiannually on December 31 and June 30. Oct. 1. Borrowed $120,000 by issuing a 10-year, 7% installment note to Nicks Bank. The note requires annual payments of $17,085, with the first payment occurring on September 30, Year 2. Dec. 31. Accrued $2,100 of interest on the installment note. The interest is payable on the date of the next installment note payment.  31. Paid the semiannual interest on the bonds. The bond discount amortization of $36,735 is combined with the semiannual interest payment. Year 2   June 30. Paid the semiannual interest on the bonds. The bond discount amortization of $36,735 is combined with the semiannual interest…

Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $8,500,000 of 8-year, 6% bonds at a market (effective) interest rate of 4%, receiving cash of $9,654,106. Interest is payable semiannually on April 1 and October 1. a.  Journalize the entry to record the issuance of bonds on April 1, 20Y1. If an amount box does not require an entry, leave it blank.   Cash  fill in the blank  fill in the blank    Premium on Bonds Payable  fill in the blank  fill in the blank    Bonds Payable  Journalize the entry to record the first interest payment on October 1, 20Y1, and amortization of bond premium for six months, using the straight-line method. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.   Interest Expense  fill in the blank  fill in the blank    Premium on Bonds Payable  fill in the blank  fill in the…