Prepare the journal entries to record the following transactions. (Round answer to 2 decimal places, e.g. 38,548.25. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries 1. 2. 3. 4. The issuance of the bonds on June 30, 2025. The payment of interest and the amortization of the premium on December 31, 2025. The payment of interest and the amortization of the premium on June 30, 2026. The payment of interest and the amortization of the premium on December 31, 2026.

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter17: Accounting For Notes And Interest
Section: Chapter Questions
Problem 3CE
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On June 30, 2025, Kevin Hall Company issued $5,840,000.00 face value of 13%, 20-year bonds at $6,279,340.00, a yield of 12%. Hall uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. 

 

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Prepare the journal entries to record the following transactions. (Round answer to 2 decimal places, e.g. 38,548.25. If no
entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are
automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
1.
2.
3.
4.
The issuance of the bonds on June 30, 2025.
The payment of interest and the amortization of the premium on December 31, 2025.
The payment of interest and the amortization of the premium on June 30, 2026.
The payment of interest and the amortization of the premium on December 31, 2026.
Transcribed Image Text:Prepare the journal entries to record the following transactions. (Round answer to 2 decimal places, e.g. 38,548.25. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) 1. 2. 3. 4. The issuance of the bonds on June 30, 2025. The payment of interest and the amortization of the premium on December 31, 2025. The payment of interest and the amortization of the premium on June 30, 2026. The payment of interest and the amortization of the premium on December 31, 2026.
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