eBook Show Me How A Calculator Print Item Bond Discount, Entries for Bonds Payable Transactions On July 1, Year 1, Danzer Industries Inc. issued $6,600,000 of 9-year, 10% bonds at a market (effective) interest rate of 12%, receiving cash of $5,885,352. Interest on the bonds is payable semiannually, on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds fram the issuance of the bonds on July 1, Year 1. If an amount box does not require an entry, leave it blank. Cash Discount on Bonds Payable Bonds Payable 2. Journalize the entries to record the following: If an amount box does not require an entry, leave it blank. a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method. (Round your answer to the nearest dollar.) Feedbeck Check My Work ( Previous 8:45 AM 3/28/2020 00 00 00 00 agenow.com/im/takeAssignment/takeAssignmentMain.doinvoker atakeAssignmentSessionlocator &inprogress false Print tem BShow Me How Calculator eBook b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the straight-line method. (Round your answer to the nearest dollar) Ohek My n Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond. Leaming Objective 2. 3. Determine the total interest expense for Year 1. Round to the nearest dollar. 4. Wi the bond proceeds always be less than the face amount of the bonds when the contract rabe is less than the market cate of interest? 5. Compute the price of $5.885.352 recelived for the bonds bv using Exhibit 5 and Exhibit 7. (Round vou PV values to 5 decimal places and the final Ched y Work (Previous 846 AM 3/2/2020
eBook Show Me How A Calculator Print Item Bond Discount, Entries for Bonds Payable Transactions On July 1, Year 1, Danzer Industries Inc. issued $6,600,000 of 9-year, 10% bonds at a market (effective) interest rate of 12%, receiving cash of $5,885,352. Interest on the bonds is payable semiannually, on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds fram the issuance of the bonds on July 1, Year 1. If an amount box does not require an entry, leave it blank. Cash Discount on Bonds Payable Bonds Payable 2. Journalize the entries to record the following: If an amount box does not require an entry, leave it blank. a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method. (Round your answer to the nearest dollar.) Feedbeck Check My Work ( Previous 8:45 AM 3/28/2020 00 00 00 00 agenow.com/im/takeAssignment/takeAssignmentMain.doinvoker atakeAssignmentSessionlocator &inprogress false Print tem BShow Me How Calculator eBook b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the straight-line method. (Round your answer to the nearest dollar) Ohek My n Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond. Leaming Objective 2. 3. Determine the total interest expense for Year 1. Round to the nearest dollar. 4. Wi the bond proceeds always be less than the face amount of the bonds when the contract rabe is less than the market cate of interest? 5. Compute the price of $5.885.352 recelived for the bonds bv using Exhibit 5 and Exhibit 7. (Round vou PV values to 5 decimal places and the final Ched y Work (Previous 846 AM 3/2/2020
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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Transcribed Image Text:eBook
Show Me How
A Calculator
Print Item
Bond Discount, Entries for Bonds Payable Transactions
On July 1, Year 1, Danzer Industries Inc. issued $6,600,000 of 9-year, 10% bonds at a market (effective) interest rate of 12%, receiving cash of
$5,885,352. Interest on the bonds is payable semiannually, on December 31 and June 30. The fiscal year of the company is the calendar year.
Required:
1. Journalize the entry to record the amount of cash proceeds fram the issuance of the bonds on July 1, Year 1. If an amount box does not require an
entry, leave it blank.
Cash
Discount on Bonds Payable
Bonds Payable
2. Journalize the entries to record the following: If an amount box does not require an entry, leave it blank.
a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method. (Round
your answer to the nearest dollar.)
Feedbeck
Check My Work
( Previous
8:45 AM
3/28/2020
00
00
00
00
Transcribed Image Text:agenow.com/im/takeAssignment/takeAssignmentMain.doinvoker atakeAssignmentSessionlocator &inprogress false
Print tem
BShow Me How
Calculator
eBook
b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the straight-line method. (Round your answer to the
nearest dollar)
Ohek My n
Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account.
The straight-line method of amortization provides equal amounts of amortization over the life of the bond.
Leaming Objective 2.
3. Determine the total interest expense for Year 1. Round to the nearest dollar.
4. Wi the bond proceeds always be less than the face amount of the bonds when the contract rabe is less than the market cate of interest?
5. Compute the price of $5.885.352 recelived for the bonds bv using Exhibit 5 and Exhibit 7. (Round vou PV values to 5 decimal places and the final
Ched y Work
(Previous
846 AM
3/2/2020
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