On January 1, 2018, Rlo tick Park issues $790,000 of 69 bonds, due n twelve year
ID: 2595646 • Letter: O
Question
On January 1, 2018, Rlo tick Park issues $790,000 of 69 bonds, due n twelve years, with merest payable semiannual on June 30 and December 31 each year. Assum ng the market interest rate on e issue date s 7%, the bonds wil ssue at $726 569 1. Complete the nrst three rows of an amorizatlon table through December 31, 2018. (Round your answers to the nearest dollar amount. Enter all amounts as positlve values. Datc Cash Paid g Valuc Carrying Va D5 302013 2312018 2. Record the bond issue on January 1, 2010, and the first two semi annual interes: payments en June 30, 2013, and December 31, 2018 f no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest dollar amount.)Explanation / Answer
1. First 3 rows of amortization table is as prepared below:
2.
Required journal entries are as prepared below:
A B C D E Semiannual Interest Period Cash Interest Paid Bond Interest Expense Discount amortization Discount Carrying Value at end of period 790,000*6%*6/12 E*7%*6/12 B-A E+C 0 $ 63,431.00 $726,569.00 1 $23,700 $25,430 $1,729.9 $61,701 $728,299 2 $23,700 $25,490 $1,790.5 $59,911 $730,089