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ACCT 301 Chapter 10 Review 1. Johnson Company issued 7 vear...

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ACCT 301 Chapter 10 Review 1. Johnson Company issued 7 vear bonds dated January 1. 2019 that pays interest semiannually on June 30 and December 31. The bonds have a $500.000 par value, an annual contract rate of 6%. The market interest rate on the issue date was 4%. A. Calculate the bond issue price_Socr) X Garo =3g000 B. Write the journal entry to record the issuance of the bond Cosh Tonds Bogable 30,002 C. Johnson uses straight line amortization of bond discount or bond premium. Calculate the first semi- annual interest payment D. Calculate the interest expense to be recorded for the first semi-annual interest payment. E. Write the journal entry to record the first semi-annual interest payment F. What is the interest expense to be recorded with the 3" semi-annual interest payment? 2. Several years later, when the unamortized premium on Johnson Company's bond was $43,245, the Company retired the bonds by buying them on the open market at 102. A. What is the gain or loss on this retirement? B. Write the journal entry to record the retirement of the bonds

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