Swiss Inc. sold 20-year bonds with a total face amount of $401,000 and a stated rate of 7.5%. The bonds sold for $425,000 on January 1, 2024, and pay interest semiannually on June 30 and December 31. Required: 1. Prepare the entry to recognize the sale of the bonds. If an amount box does not require an entry, leave it blank. 2024 Jan. 1 (Record issuance of bonds at premium.) 2. Determine the amount of the semiannual interest payment required by the bonds. Round your answer to the nearest whole dollar and use the same in subsequent calculations. 3. Prepare the journal entry made by Swiss at June 30, 2024, to recognize the interest expense and an interest payment. If an amount box does not require an en leave it blank. 2024 June 30 88 (Record interest expense.) 4. Determine the amount of interest expense for 2024.
Swiss Inc. sold 20-year bonds with a total face amount of $401,000 and a stated rate of 7.5%. The bonds sold for $425,000 on January 1, 2024, and pay interest semiannually on June 30 and December 31. Required: 1. Prepare the entry to recognize the sale of the bonds. If an amount box does not require an entry, leave it blank. 2024 Jan. 1 (Record issuance of bonds at premium.) 2. Determine the amount of the semiannual interest payment required by the bonds. Round your answer to the nearest whole dollar and use the same in subsequent calculations. 3. Prepare the journal entry made by Swiss at June 30, 2024, to recognize the interest expense and an interest payment. If an amount box does not require an en leave it blank. 2024 June 30 88 (Record interest expense.) 4. Determine the amount of interest expense for 2024.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 16E
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