On July 1, 20Y1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $6,900,000 of 8-year, 9% bonds at a market (effective) interest rate of 11%, receiving cash of $6,178,103. 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 on July 1, 20Y1. 20Y1 July 1 Cash Discount on Bonds Payable Bonds Payable 6,178,103 721,897 6,900,000 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 straight-line method. Round to the nearest dolla

On July 1, 20Y1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $6,900,000 of 8-year, 9% bonds at a market (effective) interest rate of 11%, receiving cash of $6,178,103. 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 on July 1, 20Y1. 20Y1 July 1 Cash Discount on Bonds Payable Bonds Payable 6,178,103 721,897 6,900,000 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 straight-line method. Round to the nearest dolla

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PB: Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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