Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,456,448.
1.Prepare the January 1, 2015, journal entry to record the bonds’ issuance.
Answer:
Cash dr 3,456,448
discount on bonds payable dr 543,552
bonds payable cr 4,000,000
2(a) For each semiannual period, complete the table below
to calculate the cash payment.
2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization.
Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life.
total bond interest expense over life of bonds
amount repaid
______ payments of _____
par value at maturity ________
total repaid ________
less amount borrowed ______
total bond interest expense ________
4. Prepare the first two years of an amortization table using the straight-line method.
semiannual period end unamortized discount carrying value
01/01/2015
06/30/2015
I managed to answer the first two questions, but I got stuck on the rests. Can someone please help me?