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C. on it's balance sheet at December 31,2018, the company will report the bonds at _____ of $___.

Requirement 1. Fill in the blanks to complete each statement. a. Monte Carmen Resorts' bonds are priced at (express the price as a percentage) 96 % b. When Monte Carmen Resorts issued its bonds, the market interest rate was higher than 6 percent. c. The amount of bond discount or premium is $ 18,000. Requirement 2. Record each transaction. (Do not round any intermediary computations, but then round all amounts you enter into the journal entry tables to the nearest whole dollar. Record debits first, then credits. Exclude explanations from any journal entries.) On April 1, 2018, Monte Carmen Resorts issued $450,000 of 15-year, 6 percent bonds payable. The bonds were sold for $432,000. The bonds pay interest each September 30 and March 31, and any discount or - Journal Entry Date Accounts Credit Apr 1 Cash Discount on bonds payable Bonds payable Debit 432,000 18,000 450,000 b. Payment of interest (and amortization of discount or premium, if any) on September 30, 2018 Journal Entry Accounts Date Debit Credit Sep 30 14,100 Interest expense Discount on bonds payable Cash 600 13,500 c. Accrual of interest (and amortization of discount or premium, if any) on December 31, 2018 Journal Entry Date Accounts Credit Debit 7,050 Dec 31 Interest expense 300 Discount on bonds payable Interest payable 6,750 On April 1, 2018, Monte Carmen Resorts issued $450,000 of 15-year, 6 percent bonds payable. The bonds were sold for $432,000. The bonds pay interest each September 30 and March 31, and any discount or premium is amortized using straight-line amortization. Read the requirements, b. Payment interest (and amortization of discount or premium, if any) on September 30, 2018. Journal Entry Date Accounts Debit Credit Sep 30 14,100 Interest expense Discount on bonds payable 600 Cash 13,500 c. Accrual of interest (and amortization of discount or premium, if any) on December 31, 2018 Journal Entry Date Accounts Debit 7,050 Dec 31 Interest expense Discount on bonds payable Interest payable only the discount or premium value only the gross value Requirement 3. At what amount will Monte Carmen Resorts report the bonds on its balan the carrying amount On its balance sheet at December 31, 2018, the company will report the bonds at of $

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