Problem 14-4A Straight-Line: Amortization of bond discount LO P2 [The following information applies...
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Accounting
Problem 14-4A Straight-Line: Amortization of bond discount LO P2
[The following information applies to the questions displayed below.] Legacy issues $740,000 of 7.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $680,186 when the market rate is 10%.
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Journal entry worksheet Record the issue of bonds with a par value of $740,000 on January 1, 2019 at an issue price of $680,186. Note: Enter debits before credits. Date General Journal Debit Credit January 01 2. Determine the total bond interest expense to be recognized over the bonds' life. Total bond interest expense over life of bonds: Amount repaid: payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense $ 0 3. Prepare a straight-line amortization table for the bonds' first two years. Carrying Value Semiannual Period- Unamortized End Discount 01/01/2019 06/30/2019 12/31/2019 06/30/2020 12/31/2020 Journal entry worksheet Record the interest payment and amortization on June 30. Note: Enter debits before credits. Date General Journal Debit Credit June 30 Journal entry worksheet
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