Remaining Time 43 min 46 seconds QUESTION 1 Johnnsston Indus

Remaining Time: 43 min 46 seconds. QUESTION 1 Johnnsston Industries is planning for the construction of a 4-level shopping centermovie complex. To finance the construction, Johnnston is considering the ihouance of a $40.00,000 bond ise The bonds tissue on January-2015 . S40,000,000, 15-year 6% bond, paying Interest due annually on January 1, of oach year for the nest 15 years REQUIRED: Scheduled retirement is January 1,2034 1. C January 1, 2019 Issued the entire bond issus to investors The quote is 97 December 31, 2019 Accrued the interest on the bonds as of and amortized the valuation account that was recognized on January 12019 using the straight-line method January 1, 2020 Paid the interest due on the bond issue 2. Independent of 1\" above, assume the bonds are issued at 105, due to economic conditions. Prepare the required journal entries on January 1, 2019, December 31, 2013, and January 1,2020 3. Assume that REQUIRED: January 1, 2029. A on January REQUIRED will include interest and payment on the outstanding loan balance for the next 10 years. The installment payments Present the following journal entries 1. Signing of the note on January 1, 2019 2 Accrual of AND payment of the 1st installment payment 3 Acorual of AND payment of the 2nd installment payment TTT Arnal3412p

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Journal Entries - Johnsston Industries
Date	Particulars	Debit	Credit
1-Jan-19	Cash Dr	$38,800,000.00
	Discount on issue of bond Dr	$1,200,000.00
	To Bond Payable		$40,000,000.00
	(To record issue of bond at discount)
31-Dec-19	Interest Expense Dr	$2,480,000.00
	To Discount on issue of bond		$80,000.00
	To Interest Payable		$2,400,000.00
	(To record accrued interest and discount amortization)
1-Jan-20	Interest Payable Dr	$2,400,000.00
	To Cash		$2,400,000.00
	(To record interest payment)