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quity - Buil. Park Corporation is planning to issue bonds with a face value of...

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Accounting

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quity - Buil. Park Corporation is planning to issue bonds with a face value of $3,400,000 and a coupon rate of 7 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective interest amortization method and also uses a premium account. Assume an annual market rate of interest of 6.0 percent. (FV of $1. PV of $1. EVA [ $1. and PVA 5.1) (Use the 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. How will Park present its bonds on its June 30 balance sheet? Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list View journal entry worksheet Date No 1 Debit Credit January 01 General Journal Interest expense Premium on bonds payable Req3 >

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