Homework Chapter 9HW Score 067 of 1 pt 44 of 10 8 comploe HW

Homework: Chapter 9-HW Score: 0.67 of 1 pt 44 of 10 (8 comploe) HW Score: 72.78%, 728 of 10 E9-45B (similar to) 1. Record (a) ssuance of the bonds on January 31, 2016, (bj te semannual interest payment and amorization of bond decount on y 31, 2016, and c)h instccnal and discount amortuzation on Decemter 31, 2016 b. Record the payment of semiannual interest and amortication of bond discount on July 31, 2016 Journal Entry Creat 36 500 Juy 31 tenest Expense 31,500 05,000 Discount on Bonds Payabie nterest accnual and dscount amotization on December 31, 2016.(Do not ound inermediary calulations Oniy round the amount you input in the cel to the neanesit whoie dolar) Journal Entry 31 nterest Expense 26.250 Discount on Bonds Payabie nterest Payable

Solution

Maturity value of bonds 9,000,000 Issue price 8370000 Discount on bonds payable 630,000 Number of periods 20 Discount amortized each period 31500 Cash interest semi annual 405000 (9000,000*9%*6/12) Journal entries: Date Accounts title and explanations Debit $ Credit $ 31.01.16 Cash account Dr. 8,370,000 Discount on bonds payable Dr. 630,000      Bonds payable 9,000,000 July 31.16 Interest expense Account Dr. 436500     Cash account 405000     Discount on bonds payable 31500 Dec31 2016 Interest expense Account Dr. 363750     Interest payable (9000,000*9%*5/12) 337500     Discount on bonds payable (31500*5/6) 26250