Hambelton Ltd. issued $5,000,000 of 5% bonds payable on 1 September 20X9 to yield 4%. Interest on the bonds is paid semi-annuallyand is payable each 28 February and 31 August. The bonds were dated 1 March 20X8, and had an original term of five years. Theaccounting period ends on 31 December. The effective-interest method is used. (PV of $1, PVA of $1, and PVAD of $1.) (Useappropriate factor(s) from the tables provided.)2. Prepare a bond amortization table for the life of the bond. (Round time value factor to 5 decimal places. Do not roundintermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no cells blank - be certain to enter"O" wherever required.)PremiumAmortizationInterestInterestUnamortizedNet BondDatePaymentExpensePremiumLiabilityOpening1247 3.Prepare journal entries to record the issuance of the bonds, payment of interest, and all necessary adjustments through to the end of20X10. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round youranswers to the nearest whole dollar amount.)View transaction listJournal entry worksheet13 4>Record the issuance of bonds at a premium.Note: Enter debits before credits.DateGeneral JournalDebitCredit1 September 20X9Record entryClear entryView general journal3.Prepare journal entries to record the issuance of the bonds, payment of interest, and all necessary adjustments through to the end of20X10. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round youranswers to the nearest whole dollar amount.)View transaction listRecord the issuance of bonds at a premium.>12Record the accrual of interest expense.3Record the payment of interest on bonds.4Record the payment of interest on bonds.5 Record the accrual of interest expense.CreditNote := journal entry has been enteredRecord entryClear entryView general journal4. Calculate the interest expense that would be recorded in each of 20X9 and 20X10. (Do not round intermediate calculations.Round your final answers to the nearest whole dollar amount.)20X920X10Interest expense5. Show how the bond would be presented on the statement of financial position as of 31 December 20X9 and 20X10. (Do not roundintermediate calculations. Round your final answers to the nearest whole dollar amount.)HAMBELTON LIMITEDStatement of Financial Position (Partial)As of 31 December20X920X10Bonds payablePremium on bond payable$0 $

Dear Student as per Bartleby answering guidelines we can answer only three subparts. Current value…

Hambelton Ltd. issued $5,000,000 of 5% bonds payable on 1 September 20X9 to yield 4%. Interest on the bonds is paid semi-annually and is payable each 28 February and 31 August. The bonds were dated 1 March 20X8, and had an original term of five years. The accounting period ends on 31 December. The effective-interest method is used. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) 2. Prepare a bond amortization table for the life of the bond. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no cells blank - be certain to enter "O" wherever required.) Interest Interest Premium Unamortized Net Bond Date Dumium

Hambelton Ltd. issued $5,000,000 of 5% bonds payable on 1 September 20X9 to yield 4%. Interest on the bonds is paid semi-annually and is payable each 28 February and 31 August. The bonds were dated 1 March 20X8, and had an original term of five years. The accounting period ends on 31 December. The effective-interest method is used. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) 2. Prepare a bond amortization table for the life of the bond. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no cells blank - be certain to enter "O" wherever required.) Interest Interest Premium Unamortized Net Bond Date Dumium

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 15MCQ

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