Accounting HW6 &amp; Corrections

# Accounting HW6 &amp; Corrections - Assignme nt Pr int...

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11/18/13 Assignment Print View ezto.mhecloud.mcgraw-hill.com/hm_accounting.tpx?todo=printviewSingle 1/4 Score: 100 out of 100 points (100%) 1. award: 25 out of 25.00 points On January 1, 2011, Kidman Enterprises issues bonds that have a \$1,700,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will Kidman pay (in cash) to the bondholders every six months? \$ \$ Par (maturity) Value Semiannual Rate Semiannual Cash Interest Payment 1,700,000 X 9% = 76,500 2. Prepare journal entries for the following. a. The issuance of bonds on January 1, 2011. Date General Journal Debit Credit jan. 1, 2011 Cash 1,700,000 Bonds payable 1,700,000 b. The first interest payment on June 30, 2011. (Do not round intermediate calculations.) Date General Journal Debit Credit Jun. 30, 2011 Bond interest expense 76,500 Cash 76,500 c. The second interest payment on December 31, 2011. (Do not round intermediate calculations.)

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11/18/13 Assignment Print View ezto.mhecloud.mcgraw-hill.com/hm_accounting.tpx?todo=printviewSingle 2/4 Date General Journal Debit
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