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Hillside issues $1,400,000 of 5%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31.   Problem 14-2A (Algo) Straight-Line: Amortization of bond premium LO P3 The bonds are issued at a price of $1,713,594. Required: 1. Prepare the January 1 journal entry to record the bonds’ issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments.

Hillside issues $1,400,000 of 5%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31.   Problem 14-2A (Algo) Straight-Line: Amortization of bond premium LO P3 The bonds are issued at a price of $1,713,594. Required: 1. Prepare the January 1 journal entry to record the bonds’ issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments.

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter4: The Adjustment Process
Section: Chapter Questions
Problem 10PA: Prepare journal entries to record the following transactions. Create a T-account for Interest...
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Hillside issues $1,400,000 of 5%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31.

 

Problem 14-2A (Algo) Straight-Line: Amortization of bond premium LO P3

The bonds are issued at a price of $1,713,594.

Required:
1. Prepare the January 1 journal entry to record the bonds’ issuance.
2(a) For each semiannual period, complete the table below to calculate the cash payment.
2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization.
2(c) For each semiannual period, complete the table below to calculate the bond interest expense.
3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life.
4. Prepare the first two years of a straight-line amortization table.
5. Prepare the journal entries to record the first two interest payments.
 

Prepare the journal entries to record the first two interest payments. (Round your intermediate and final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 1 2 Record the second interest payment on December 31. Note: Enter debits before credits. Date December 31 Record entry General Journal Clear entry Debit Credit View general journal
Transcribed Image Text:Prepare the journal entries to record the first two interest payments. (Round your intermediate and final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 1 2 Record the second interest payment on December 31. Note: Enter debits before credits. Date December 31 Record entry General Journal Clear entry Debit Credit View general journal
Prepare the journal entries to record the first two interest payments. (Round your intermediate and final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 1 2 Record the first interest payment on June 30. Note: Enter debits before credits. Date June 30 General Journal Debit Credit >
Transcribed Image Text:Prepare the journal entries to record the first two interest payments. (Round your intermediate and final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 1 2 Record the first interest payment on June 30. Note: Enter debits before credits. Date June 30 General Journal Debit Credit >
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