Question

In: Accounting

On January 1, 2019, Hopkins Corporation issued bonds with a face value of $230,000,000 that pay...

On January 1, 2019, Hopkins Corporation issued bonds with a face value

of $230,000,000 that pay interest on June 30th and December 31st.

The coupon rate of the bonds is 8% while the effective rate is 10%.

The bonds mature in 14 years. Hopkins' fiscal year ends on

December 31st. Any discount/premium is to be amortized using

the straight-line method.

Required (if necessary, round calculations to the nearest dollar):

1. Calculate the present value of the bond.

2. Journalize the issuance of the bond.

3. Journalize the first interest payment.

4. Prepare the balance sheet presentation of the bond on 12/31/2020.

5. Prepare the journal entry for the redemption of the bond for 94

on 6/30/21. Hint: Journalize the interest payment first.

Expert Solution

for formulas and calculations, refer to the image below -

Kindly ask in comments if you have any query.

ekkarill92 answered 6 months ago

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