Check my WorK On January 1, a company purchased 4%, 10-year corporate bonds for
ID: 2335417 • Letter: C
Question
Check my WorK On January 1, a company purchased 4%, 10-year corporate bonds for $59,585,058 as an investment. The bonds have a face amount of $70 million and are priced to yield 6%. Interest is paid semiannually. Prepare a partial amortization table at the effective interest rate on June 30 and December 31 Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31 Complete this question by entering your answers in the tabs below General Amort Table Journal Prepare a partial amortization table at the effective interest rate on June 30 and December 31. (Round your intermediate calculations to the nearest dollar amount. Enter your answers in whole dollars. Round final answers to the nearest whole dollar.) Period-End Cash Interest Bond InterestDisco Received Amortization Carrying Value Revenue January 1 June 30 December 31 S 59,586,058 Amort Table General Journal>Explanation / Answer
Requirement 1 Partial Amortization Table Period-End Cash Interest Received Bond Interest revenue Discount Amortisation Carrying value 1-Jan $ 59,586,058 30-Jun $ 1,400,000 $ 1,787,582 $ 387,582 $ 59,973,640 31-Dec $ 1,400,000 $ 1,799,209 $ 399,209 $ 60,372,849 Requirement 2 date General journal Debit Credit 30-Jun-18 Cash $ 1,400,000 Discount on bond issue $ 387,582 To Interest Income $ 1,787,582 (Being interest recorded @ 6% interest received @ 4% and discount on bond amortised) 30-Jun-18 Cash $ 1,400,000 Discount on bond issue $ 399,209 To Interest Income $ 1,799,209 (Being interest recorded @ 6% interest received @ 4% and discount on bond amortised) Requirement 1 Partial Amortization Table Period-End Cash Interest Received Bond Interest revenue Discount Amortisation Carrying value 43101 59586058 43281 =ROUND(70000000*4%/2,0) =ROUND(M4*6%/2,0) =K5-J5 =M4+L5 43465 =ROUND(70000000*4%/2,0) =ROUND(M5*6%/2,0) =K6-J6 =M5+L6