Financial and Managerial Accounting: P12-45 Daniels Consulting is considering raising additional

Financial and Managerial Accounting 
P12-45 Describing bonds and journalizing transactions for bonds payable using the straight-line amortization 
This problem continues the Daniels Consulting situation from Problem P11-35 of Chapter 11. 
Daniels Consulting is considering raising additional capital. Daniels plans to raise the capital by issuing $500,000 of 8%, seven-year bonds on January 1, 2017. The bonds pay interest semiannually on June 30 and December 31. On January 1, 2017, the market rate of interest required by investors for similar bonds is 10%. 

Requirements: 
1. Will Daniels's bonds issue at face value, a premium or a discount? 
2. Calculate and record the cash received on the bond issue date. 
3. Journalize the first interest payment on June 30 and amortize the premium or discount using the straight-line amortization method. 
4. Journalize the entry required, if any, on December 31 related to the bonds.
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