The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its Moonlight Bay project, LHD issued 7% bonds with a face amount of $570,000 on November 1, 2016. The bonds sold for $513,591, a price to yield the market rate of 8%. The bonds mature October 31, 2036 (20 years). Interest is paid semiannually on April 30 and October 31.Required:1. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2016?Interest Expense$6,8482. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2016?Bonds Payable$513,789Interest Payable3. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2017?Interest Expense 4. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2017?Bonds PayableInterest Payable

1. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2016?

2. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2016?

carrying value of bonds payable = $513,591 + $197.88 = $513,788.88

interest payable $6,650

3. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2017?

total interest expense = $13,701.04 + $20,567.60 + $6,864.10 = $41,132.74

4. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2017?

carrying value of bonds payable = $515,021.62

interest payable $6,650

Explanation:

the journal entry to record the purchase:

November 1, 2016, bonds issued at a discount

Dr Cash 513,591

Dr Discount on bonds payable 56,409

    Cr Bonds payable 570,000

journal entry to record accrued interests:

December 31, 2016

Dr Interest expense 6,847.88

    Cr Interest payable 6,650

    Cr Discount on bonds payable 197.88

bond discount amortization (December 31, 2016) = (513,591 x 8% x 2/12) - (570,000 x 7% x 2/12) = 6,847.88 - 6,650 = 197.88

journal entry to record first coupon payment:

April 30, 2017

Dr Interest expense 13,701.04

Dr Interest payable 6,650

    Cr Cash 19,950

    Cr Discount on bonds payable 401.04

bond discount amortization (December 31, 2016) = ($513,788.88 x 8% x 4/12) - (570,000 x 7% x 4/12) = 13,701.04 - 13,300 = 401.04

journal entry to record second coupon payment:

October 31, 2017

Dr Interest expense 20,567.60

    Cr Cash 19,950

    Cr Discount on bonds payable 617.60

bond discount amortization (December 31, 2016) = ($514,189.92 x 4%) - (570,000 x 3.5%) = 20,567.60 - 19,950 = 617.60

journal entry to record accrued interests:

December 31, 2017

Dr Interest expense 6,864.10

    Cr Interest payable 6,650

    Cr Discount on bonds payable 214.10

bond discount amortization (December 31, 2016) = (514,807.52 x 8% x 2/12) - (570,000 x 7% x 2/12) = 6,864.10 - 6,650 = 214.10

no one can you on this you have to find a website that displays their earnings for this

i would ask my boss to do more things around the car shop. and i would slowly work my way up to working on cars and becoming a full time mechanic.