PartC aion is ringto bnds with a face e of S740.000 and acoupon nteof75pwcent Th

Question

PartC aion is ringto bnds with a face e of S740.000 and acoupon nteof75pwcent The bords "un8year"d pay ment se aruly-y June 30 and Dember 31 Al of the bonds were sold on January 1 ofthis year Park um the efdverterest an talon method and also uses adscout acort A meanual makat rato o merost of 0.5 peroon Eyof S1. Pyot51. DA1. and PVA1) Use the appropriate factors) from the tables provided. Round your final answer to whole dollars.) 1. Prepare the journal entry to record the issuance of the bonds (f no entry is required for a transactionlevent, select "No journal entry required" in the first account fleld.) Journal entry worksheet Record the issuance of bonds debns before Date Debit Credit January 01 Cash on bonds payable Bonds payable Record entry Clear entry View general journal

Explanation / Answer

Period Cash Flow PV factor Anuaity 8.5%/2 16 27750 11.44031 317468.6 16 th year 8.5/2 740000 0.513787 380202.3 Value of bond 697671 DR CR Cash    6,97,671 Discount on Bond Payable        42,329 Bond Payable 740000 Interets Expense 697671*8.5%/2 29651 Discount on Bond Payable 1901 Cash 27750 Balance Sheet (Partial) Long Term Liabilities Bond Payable 740000 Discount on Bond Payable 40428 699572

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