Accounting Help Please???!?

On July 1, 2012, Brower Industries Inc. issued $3,600,000 of 4-year, 11% bonds at a market (effective) interest rate of 12%, receiving cash of $3,488,224. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.
1. Journalize the entry to record the amount of cash proceeds from the sale of the bonds. For a compound transaction, if an amount box does not require an entry, leave it blank or enter “0”.
I got
Debit Cash 3,488,224
Descount on bonds payable ? Not sure?
Bonds payable 36,000,000
2. Journalize the entries to record the following: (For a compound transaction, if an amount box does not require an entry, leave it blank or enter “0”.)
a. The first semiannual interest payment on December 31, 2012, and the amortization of the bond discount, using the straight-line method. (Round to the nearest dollar.)
b. The interest payment on June 30, 2013, and the amortization of the bond discount, using the straight-line method. (Round to the nearest dollar.)
3. Determine the total interest expense for 2012.
4. Compute the price of $3,488,224 received for the bonds by using the tables of present value in Appendix A. (Round to the nearest dollar.) Your total may vary slightly from the price given due to rounding differences.
Please explain if possible

Both comments and pings are currently closed.

Comments are closed.

Powered by WordPress | Designed by: free css template | Thanks to hostgator coupon and web hosting reviews