# ACCOUNTING

 5 Prepare the journal entries to record the first two interest payments. (Round your intermediate calculations and final answers to the nearest dollar amount. Omit the “\$” sign in your response.)

 Date General Journal Debit Credit June 30 (Click to select) Dec. 31 (Click to select)

Problem 10-3A Straight-line amortization of bond premium L.O. P1, P3

 Heathrow issues \$1,900,000 of 5%, 15-year bonds dated January 1, 2011, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of \$2,325,594.

 Required: 1. Prepare the January 1, 2011, journal entry to record the bonds’ issuance. (Omit the “\$” sign in your response.)

 Date General Journal Debit Credit Jan. 1 (Click to select)

 Cash payment \$

 2(c) For each semiannual period, compute the the bond interest expense. (Omit the “\$” sign in your response.)

 Bond interest expense \$

 3 Determine the total bond interest expense to be recognized over the bonds’ life. (Omit the “\$” sign in your response.)

 Total bond interest expense \$

 4 Prepare the first two years of an amortization table using the straight-line method. (Omit the “\$” sign in your response.)

 Semiannual Period-End Unamortized Premium Carrying Value 1/01/2011 \$ \$ 6/30/2011 12/31/2011 6/30/2012 12/31/2012

 5 Prepare the journal entries to record the first two interest payments. (Omit the “\$” sign in your response.)

 Date General Journal Debit Credit June 30 (Click to select) Dec. 31 (Click to select)

Problem 10-6A Straight-line amortization of bond discount L.O. P1, P2

[The following information applies to the questions displayed below.]

 Patton issues \$590,000 of 7.5%, four-year bonds dated January 1, 2011, that pay interest semiannually on June 30 and December 31. They are issued at \$542,310 and their market rate is 10% at the issue date.

references

10.

value: 10.00 points

Problem 10-6A Part 1

 1 Prepare the January 1, 2011, journal entry to record the bonds’ issuance. (Omit the “\$” sign in your response.)
 Date General Journal Debit Credit Jan. 1 (Click to select)

11.

value: 10.00 points

Problem 10-6A Part 2

 2 Determine the total bond interest expense to be recognized over the bonds’ life. (Omit the “\$” sign in your response.)
 Total bond interest expense \$

12.

value: 10.00 points

Problem 10-6A Part 3

 3 Prepare a straight-line amortization table for the bonds’ first two years. (Make sure that the unamortized discount is adjusted to “0” and the carrying value equals to face value of the bond in the last period. Round your intermediate calculations and final answers to the nearest dollar amount. Omit the “\$” sign in your response.)
 Semiannual Interest Period-End Unamortized Discount Carrying Value 1/01/2011 \$ \$ 6/30/2011 12/31/2011 6/30/2012 12/31/2012