On the first day of its fiscal year, Chin Company issued $19,500,000 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 Company receiving cash of $17,918,297. a. Journalize the entries to record the following: Issuance of the bonds. First semiannual interest payment. The bond discount amortization, using the straight-line method, is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) Second semiannual interest payment. The bond discount amortization, using the straight-line method, is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar. 1. Cash fill in the blank d740c1f88063034_2 fill in the blank d740c1f88063034_3 Discount on Bonds Payable fill in the blank d740c1f88063034_5 fill in the blank d740c1f88063034_6 Bonds Payable fill in the blank d740c1f88063034_8 fill in the blank d740c1f88063034_9 2. Interest Expense fill in the blank d740c1f88063034_11 fill in the blank d740c1f88063034_12 Discount on Bonds Payable fill in the blank d740c1f88063034_14 fill in the blank d740c1f88063034_15 Cash fill in the blank d740c1f88063034_17 fill in the blank d740c1f88063034_18 3. Interest Expense fill in the blank d740c1f88063034_20 fill in the blank d740c1f88063034_21 Discount on Bonds Payable fill in the blank d740c1f88063034_23 fill in the blank d740c1f88063034_24 Cash

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 6PA: Saverin, Inc. produces and sells outdoor equipment. On July 1, 2016, Saverin, Inc. issued 62,500,000...

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On the first day of its fiscal year, Chin Company issued $19,500,000 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 Company receiving cash of $17,918,297.

a. Journalize the entries to record the following:

Issuance of the bonds.
First semiannual interest payment. The bond discount amortization, using the straight-line method, is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)
Second semiannual interest payment. The bond discount amortization, using the straight-line method, is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)

For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar.

1.	Cash	fill in the blank d740c1f88063034_2	fill in the blank d740c1f88063034_3
	Discount on Bonds Payable	fill in the blank d740c1f88063034_5	fill in the blank d740c1f88063034_6
	Bonds Payable	fill in the blank d740c1f88063034_8	fill in the blank d740c1f88063034_9
2.	Interest Expense	fill in the blank d740c1f88063034_11	fill in the blank d740c1f88063034_12
	Discount on Bonds Payable	fill in the blank d740c1f88063034_14	fill in the blank d740c1f88063034_15
	Cash	fill in the blank d740c1f88063034_17	fill in the blank d740c1f88063034_18
3.	Interest Expense	fill in the blank d740c1f88063034_20	fill in the blank d740c1f88063034_21
	Discount on Bonds Payable	fill in the blank d740c1f88063034_23	fill in the blank d740c1f88063034_24
	Cash

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