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2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker3D&takeAssignmentSessionLocator=&inprogress3false eBook Show Me How Calculator Print Item Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $18,200,000 of five-year, 9% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 11%, resulting in Chin receiving cash of $16,828,145. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar. 1. 2. 3. Check My Work Previous Next 4:26 PM 3/27/2020 b. Determine the amount of the bond interest expense for the first year. C. Why was the company able to issue the bonds for only $16,828,145 rather than for the face amount of $18,200,0007 The market rate of interest is the contract rate of interest. Therefore, inventors willing to pay the full face amount of the bonds. Previous Next Check My Work All work saved. Save and b Submit Assgrment for Grading 42 PM Prtsc Delete Insert CHD DIN F10 FI1 F12 FF D00 000 D00 000

2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker3D&takeAssignmentSessionLocator=&inprogress3false eBook Show Me How Calculator Print Item Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $18,200,000 of five-year, 9% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 11%, resulting in Chin receiving cash of $16,828,145. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar. 1. 2. 3. Check My Work Previous Next 4:26 PM 3/27/2020 b. Determine the amount of the bond interest expense for the first year. C. Why was the company able to issue the bonds for only $16,828,145 rather than for the face amount of $18,200,0007 The market rate of interest is the contract rate of interest. Therefore, inventors willing to pay the full face amount of the bonds. Previous Next Check My Work All work saved. Save and b Submit Assgrment for Grading 42 PM Prtsc Delete Insert CHD DIN F10 FI1 F12 FF D00 000 D00 000

Financial & Managerial Accounting
Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter12: Long-Term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 12.2APR
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2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker3D&takeAssignmentSessionLocator=&inprogress3false eBook Show Me How Calculator Print Item Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $18,200,000 of five-year, 9% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 11%, resulting in Chin receiving cash of $16,828,145. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar. 1. 2. 3. Check My Work Previous Next 4:26 PM 3/27/2020
Transcribed Image Text:2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker3D&takeAssignmentSessionLocator=&inprogress3false eBook Show Me How Calculator Print Item Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $18,200,000 of five-year, 9% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 11%, resulting in Chin receiving cash of $16,828,145. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar. 1. 2. 3. Check My Work Previous Next 4:26 PM 3/27/2020
b. Determine the amount of the bond interest expense for the first year. C. Why was the company able to issue the bonds for only $16,828,145 rather than for the face amount of $18,200,0007 The market rate of interest is the contract rate of interest. Therefore, inventors willing to pay the full face amount of the bonds. Previous Next Check My Work All work saved. Save and b Submit Assgrment for Grading 42 PM Prtsc Delete Insert CHD DIN F10 FI1 F12 FF D00 000 D00 000
Transcribed Image Text:b. Determine the amount of the bond interest expense for the first year. C. Why was the company able to issue the bonds for only $16,828,145 rather than for the face amount of $18,200,0007 The market rate of interest is the contract rate of interest. Therefore, inventors willing to pay the full face amount of the bonds. Previous Next Check My Work All work saved. Save and b Submit Assgrment for Grading 42 PM Prtsc Delete Insert CHD DIN F10 FI1 F12 FF D00 000 D00 000
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