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On January 1 of this year, Kona Corporation sold bonds with a face value of...

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Accounting

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On January 1 of this year, Kona Corporation sold bonds with a face value of $1,580,000 and a coupon rate of 8 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31 . Kona uses the straight-line amortization method and also uses a premium account. Assume an annual market rate of interest of 6 percent. (FV of $1,PV of $1, FVA of $1, and PVA of $1 ) Note: Use appropriate factor(s) from the tables provided. Required: 1.\&2. Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year. 3. What bonds payable amount will Kona report on its June 30 balance sheet? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. What bonds payable amount will Kona report on its June 30 balance sheet? (Round your intermediate calculations and final answers to whole dollars.)

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