Check my work Green Mountain Power Company obtained authorization to issue 20-year bonds with a face value of $10 million. The bonds are dated May 1, 2021, and have a contract rate of interest of 10 percent. They pay interest on November 1 and May 1. The bonds were issued on August 1, 2021, at 100 plus three months' accrued interest. Required: Prepare the necessary journal entries in general journal form on the following. a. August 1, 2021, to record the issuance of the bonds. b. November 1, 2021, to record the first semiannual interest payment on the bond issue. c. December 31, 2021, to record interest expense accrued through year-end. (Round to the nearest dollar.) d. May 1, 2022, to record the second semiannual interest payment. (Round to the nearest dollar.) e. What was the prevailing market rate of interest on the date that the bonds were issued? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest dollar amount. Enter your answer in dollars not millions.)

Check my work Green Mountain Power Company obtained authorization to issue 20-year bonds with a face value of $10 million. The bonds are dated May 1, 2021, and have a contract rate of interest of 10 percent. They pay interest on November 1 and May 1. The bonds were issued on August 1, 2021, at 100 plus three months' accrued interest. Required: Prepare the necessary journal entries in general journal form on the following. a. August 1, 2021, to record the issuance of the bonds. b. November 1, 2021, to record the first semiannual interest payment on the bond issue. c. December 31, 2021, to record interest expense accrued through year-end. (Round to the nearest dollar.) d. May 1, 2022, to record the second semiannual interest payment. (Round to the nearest dollar.) e. What was the prevailing market rate of interest on the date that the bonds were issued? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest dollar amount. Enter your answer in dollars not millions.)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...

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