1)
|
Date |
General Journal |
Debit |
Credit |
|
June 30, 2018 |
Interest expense |
$
44,760,000.00 |
|
|
|
Discount on bonds payable |
|
$ 4,260,000.00 |
|
|
Cash |
|
$
40,500,000.00 |
Working Note
Interest Expense = 746 Million x 6% = 44,760,000
Cash = 810 Million x 5% = 40,500,000
2)
|
Date |
General Journal |
Debit |
Credit |
|
December 31, 2018 |
Interest expense |
$
45,015,600.00 |
|
|
|
Discount on bonds payable |
|
$ 4,515,600.00 |
|
|
Cash |
|
$
40,500,000.00 |
Working Note
Interest Expense = (746+4.26) Million x 6%= 45,015,600
Cash = 810 Million x 5% = 40,500,000
3)
|
Date |
General Journal |
Debit |
Credit |
|
December 31, 2018 |
Unrealized holding loss |
$ 7,224,400.00 |
|
|
|
Fair value adjustment |
|
$ 7,224,400.00 |
Working Note-
Current Book Value = 746,000,000+4,260,000+4,515,600 =
754,775,600
Fair Value Adjustment = 762,000,000- 754,775,600 = 7,224,400
