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a, b, c, and d E9-45. Reporting Financial Statement Effects of Bond Transactions On...

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Accounting

imagea, b, c, and d

E9-45. Reporting Financial Statement Effects of Bond Transactions On January 1, 2016, McKeown, Inc., issued $250,000 of 8%, 9-year bonds for $220,776, yielding a market (yield) rate of 10%. Semiannual interest is payable on June 30 and December 31 of each year. a. Show computations to confirm the bond issue price. b. Prepare journal entries to record the bond issuance, semiannual interest payment and discount amortization on June 30, 2016, and semiannual interest payment and discount a December 31,2016. Use the effective interest rate Post the journal entries from part b to their respective T-accounts. Record each of the transactions from part b in the financial statement effects template n on c. d

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