On the first day of its fiscal year, Chin Company issued $13,200,000 of five-year, 6% 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 8%, resulting in Chin receiving cash of $12,129,308. a.  Journalize the entries to record the following: Issuance of the bonds. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 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.                       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 $12,129,308 rather than for the face amount of $13,200,000? The market rate of interest is   the contract rate of interest. Therefore, inventors   willing to pay the full face amount of the bonds.

On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $200,000, 5%, 10-year bond that pays semiannual interest of $5,000 ($200,000 × 5% × ½ year), receiving cash of $200,000. (a)  Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank.   Cash  fill in the blank 135942f1f00b052_2 fill in the blank 135942f1f00b052_3   Bonds Payable  fill in the blank 135942f1f00b052_5 fill in the blank 135942f1f00b052_6   (b)  Journalize the entry to record the first interest payment on June 30. If an amount box does not require an entry, leave it blank.   Interest Expense  fill in the blank 838d07010fa3fc7_2 fill in the blank 838d07010fa3fc7_3   Cash  fill in the blank 838d07010fa3fc7_5 fill in the blank 838d07010fa3fc7_6   (c)  Journalize the entry to record the payment of the principal on the maturity date. If an amount box does not require an entry, leave it blank.…

On the first day of the fiscal year, a company issues an $565,000, 9%, 5-year bond that pays semiannual interest of $25,425 ($565,000 x 9% x 1/2), receiving cash of $531,100. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method. If an amount box does not require an entry, leave it blank.     Interest Expense       Discount on Bonds Payable       Cash

On the first day of its fiscal year, Ebert Company issued $23,000,000 of 5-year, 8% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 10%, resulting in Ebert receiving cash of $21,223,931. The company uses the interest method. a.  Journalize the entries to record the following: 1.  Sale of the bonds. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.  2. First semiannual interest payment, including amortization of discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. 3. Second semiannual interest payment, including amortization of discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

On the first day of the fiscal year, a company issues a $900,000, 9%, 5-year bond that pays semiannual interest of $40,500 ($900,000 x 9% × 1/2), receiving cash of $884,176. Journalize the entry for the issuance of the bonds.If an amount box does not require an entry, leave it blank

On the first day of the fiscal year, a company issues a $980,000, 8%, 5-year bond that pays semiannual interest of $39,200 ($980,000 x 8% x 1/2), receiving cash of $884,174. Journalize the entry for the issuance of the bonds. If an amount box does not require an entry, leave it blank.

Doyle Company issued $362,000 of 10-year, 5 percent bonds on January 1, Year 1. The bonds were issued at face value. Interest is payable in cash on December 31 of each year. Doyle immediately invested the proceeds from the bond issue in land. The land was leased for an annual $52, 500 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 1. Journal entry worksheet Note: Enter debits before credits. 4 Date Dec 31 5 ü 6 Record the interest expense for bonds payable for Year 2. General Journal C 7 8 Debit Credit >

Daan Corporation wholesales repair products to equipment manufacturers. On March 1, 2010, Daan Corporation issued $24,000,000 of five-year, 12% bonds at an effective interest rate of 10%, receiving cash of $25,853,146. Interest is payable semiannually on March 1 and September 1. Journalize the entries to record the following: a. Sale of bonds on March 1, 2010. b. First interest payment on September 1, 2010, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.)

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Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $30,000,000 of 10-year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $31,951,110. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1.* 2. Journalize the entries to record the following:* a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) b. The interest payment on June 30, 20Y2, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) 3. Determine the total interest expense for 20Y1. 4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is greater than the market rate of…