70.2K

Verified Solution

Link Copied!

Crosby Corporation Issued $300,000 of 6%, 10-year bonds payable on January 1, 2019. The market interest rate at the date of issuance was 4%, and the bonds pay Interest semiannually (on June 30 and December 31). Crosby Corporation's year-end is June 30 Read the reguirements CS 1. Using the PV function in Excel, calculate the issue price of the bonds. (Round your answer to the nearest whole dollar.) The issue price of the bonds is $ 2. Prepare an effective interest amortization table for the bond through the first three interest payments. Round amounts to the nearest dollar. Premium Account Bond Carrying Interest Premium Interest Payment Expense Amortization Balance Amount Semiannual Interest Date Jan 1, 2019 Jun 30, 2019 Dec 31, 2019 Jun 30, 2020 3. Record Crosby Corporation's issuance of the bonds on January 1, 2019, and payment of the first semiannual interest amount and amortization of the bond premium on June 30, 2019. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) Start by recording the issuance of bonds on January 1, 2019. Journal Entry Accounts Date Debit Credit Jan 1 Crosby Corporation issued $300,000 of 6%, 10-year bonds payable on January 1, 2019. The market interest rate at the date of Issuance was 4%, and the bonds pay interest semiannually (on June 30 and December 31). Crosby Corporation's year-end is June 30 Read the requirements, Jun 30, 2019 II Dec 31, 2019 Jun 30, 2020 3. Record Crosby Corporation's issuance of the bonds on January 1, 2019, and payment of the first semiannual interest amount and amortization of the bond premium on June 30, 2019. Explanations are not required. (Record debits first, then credits. Exclude explanations from any joumal entries.) Start by recording the Issuance bonds January 1, 2019 Journal Entry Accounts Date Debit Credit Jan 1 Record the payment of the first semiannual interest amount and amortization of the bond premium on June 30, 2019. Journal Entry Date Accounts Debit Credit Juni 30

Answer & Explanation Solved by verified expert

See Answer