Reference no: EM132829890
Hillside issues $2,300,000 of 8%, 15-year bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $2,815,190.
Problem 1: Prepare the January 1, 2013, journal entry to record the bonds' issuance.
Problem 2: a)for each semiannual period, calculate the cash payment.
Problem 2: b)for each semiannual period, calculate the bond interest expense.
Problem 2: c) for each semiannual period, calculate the bond interest expense.
Problem 3: calculate the total bond interest expense to be recognized over the bonds life.
Problem 4: Prepare the first two years of a straight-line amortization table.
Problem 5: Prepare the journal entries to record the first two interest payments.