Please help solve (Balance Sheet). Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2021, balance sheet. (Round answers to 0 decimal places, e.g. 38,548.)Nash CompanyBalance Sheet%24 On June 30, 2020, Nash Company issued $3,730,000 face value of 14%, 20-year bonds at $4,291,220, a yield of 12%. Nash uses the effective-interest method to amortize bond premium ordiscount. The bonds pay semiannual interest on June 30 and December 31.Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles andenter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)(1) The issuance of the bonds on June 30, 2020.(2) The payment of interest and the amortization of the premium on December 31, 2020.(3) The payment of interest and the amortization of the premium on June 30, 2021.(4) The payment of interest and the amortization of the premium on December 31, 2021.No.DateAccount Titles and ExplanationDebitCredit(1) June 30, 2020Cash$4,291,220.00Premium on Bonds Pay$561,220.00Bonds Payable$3,730,000.00(2) December 31,2020Interest Expense$257,473.20Premium on Bonds Payable$3,626.80Cash$261,100.00(3) June 30, 2021Interest Expense$257,255.59Premium on Bonds Payable$3,844.41Cash$261,100.00(4) December 31, 2021 |Interest Expense$257,024.93Premium on Bonds Payabl$4,075.07Cash$261,100.00

Bonds are type of security which is issued at the time when an entity or government asks money from…

Answered: Show the proper balance sheet…

Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2021, balance sheet. (Round answers to 0 decimal places, e.g. 38,548.) Nash Company Balance Sheet

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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Question

Please help solve (Balance Sheet).

Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2021, balance sheet. (Round answers to 0 decimal places, e.g. 38,548.)
Nash Company
Balance Sheet
%24

On June 30, 2020, Nash Company issued $3,730,000 face value of 14%, 20-year bonds at $4,291,220, a yield of 12%. Nash uses the effective-interest method to amortize bond premium or
discount. The bonds pay semiannual interest on June 30 and December 31.
Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and
enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(1) The issuance of the bonds on June 30, 2020.
(2) The payment of interest and the amortization of the premium on December 31, 2020.
(3) The payment of interest and the amortization of the premium on June 30, 2021.
(4) The payment of interest and the amortization of the premium on December 31, 2021.
No.
Date
Account Titles and Explanation
Debit
Credit
(1) June 30, 2020
Cash
$4,291,220.00
Premium on Bonds Pay
$561,220.00
Bonds Payable
$3,730,000.00
(2) December 31,
2020
Interest Expense
$257,473.20
Premium on Bonds Payable
$3,626.80
Cash
$261,100.00
(3) June 30, 2021
Interest Expense
$257,255.59
Premium on Bonds Payable
$3,844.41
Cash
$261,100.00
(4) December 31, 2021 |Interest Expense
$257,024.93
Premium on Bonds Payabl
$4,075.07
Cash
$261,100.00

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