Question

Help with 1-5 please

Answer 1

Journal entry
Date	General Journal				Debit	Credit
1/1/2019	Cash				3,456,448
	discount on bonds				543,552
	bonds payable					4,000,000
2-a)	par maturity value			Annual rate	/	year	semi annual cash payment
	4,000,000		*	6%		6./12	120000
							semi annual		Straight line
2-b)	par value		bonds price		Discount		periods		disc amortization
	4,000,000	-	3,456,448	=	543,552	/	30	=	18118
2-c)	Semi annual cash			Discount		bond interest expense
	payment			amortization
	120,000		+	18118	=	138,118
3)	total bond interest expense over life of bonds
	amount repaid
	30	payments of		120,000	3600000
		par value ant maturity			4,000,000
	total repaid				7600000
	less amount borrowed				3,456,448
	total bond interest expense.				4,143,552
4)		unamort	Carrying
	period	discount	value
	1/1/2019	543,552	3,456,448
	6/30/2019	525,434	3,474,566
	12/31/2019	507,315	3,492,685
	6/30/2020	489,197	3,510,803
	12/31/2020	471,078	3,528,920
5)
Date	General Journal				Debit	Credit
6/30/2019	interest expense				138,118
	Discount on bonds payable					18,118
	cash					120,000
31/12/2019
	interest expense				138,118
	discount on bonds payable					18,118
	cash					120,000