Question

Problem 9-4B Record bond issue and related interest (LO9-5) The following information applies to the questions displayed below.) Viking Voyager specializes in the design and production of replica Viking boats. On January 1, 2021, the company issues $1,830,000 of 7% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Problem 9-4B Part 2 2. If the market interest rate is 8%, the bonds will issue at $1,671,778. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.) View transaction list Journal entry worksheet Record the bond issue. Note: Enter debits before credits. General Journal Credit Date January 01, 2021 Debit 1,671,778 cash Discount on Bonds Payable Bonds Payable < Prev 56 of 6 Next >

Answer 1

Date	Account title	Debit	credit
1 Jan 2021	cash	1671778
	Discount on bond payable	158222
	Bond payable		1830000
30 June 2021	Interest expense (1671778*.08*6/12)	66871
	Discount on bond payable		2821
	cash (1830000*.07*6/12)		64050
31December 2021	Interest expense (1674599*.08*6/12)	66984
	Discount on bond payable		2934
	cash (1830000*.07*6/12)		64050

**carrying value of Bond after first semiannual payment =Issue price+ discount amortized on June 30

                           = 1671778 +2821

                           = 1674599