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Bond discount, entries for bonds payable transactions
Present Value Tables
General Journal
Final Questions
Instructions December and June The fiscal year of the company is the calendar year.
Required:
Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July
Journalize the entries to record the following:
a The first semiannual interest payment on December and the amortization of the bond discount, using the straightline method.
b The interest payment on June and the amortization of the bond discount, using the straightline method.
Determine the total interest expense for
Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market raterest?
Compute the price of $ received for the bonds by using the present value tables.
