50.1K

Verified Solution

Link Copied!

Bennys Hamburgers issued 9% 10-year bonds payable at 75 on December 31 2018. At December 31 2020 Benny reported the bonds Payable as follows:

Bennys pays semiannual interest each June 30 and December 31 ( Assume bonds Payable are authorized using straight-line amortization method)

Requirement 2: Record the June 30, 2020 semiannual interest payment and amoritization of discount ( Record debits first then credits. Select the explination on the last line of the journal entry

Accounts:

Explanations :

Data Table Long-term Liabilities 200,000 (40,000) s 160,000 Bonds Payable Less: Discount on Bonds Payable Requirements 1. Answer the following questions about Benny's bonds payable: a. What is the maturity value of the bonds? b. What is the carrying amount of the bonds at December 31, 2020? c. What is the semiannual cash interest payment on the bonds? d. How much interest expense should the company record each year? 2. Record the June 30, 2020, semiannual interest payment and amortization of discount. Requirement 1. Answer the following questions about Benny's bonds payable: a. What is the maturity value of the bonds? $ b. What is the carrying amount of the bonds at December 31, 2020? $ c. What is the semiannual cash interest payment on the bonds? $ d. How much interest expense should the company record each year? S Accounts and Explanation Debit Credit Date 2020 Jun. 30 Bonds Payable Cash Discount on Bonds Payable Interest Expense Premium on Bonds Payable Issued bonds at a discount. Issued bonds at a premium Issued bonds at face value. Paid semiannual interest and amortized discount Paid semiannual interest and amortized premium. Retired bonds payable at maturity

Answer & Explanation Solved by verified expert

See Answer