1. Journalize the following transactions of Laporte Communications, Inc.: 2010 Jan 1 Issued… 1 answer below »

 
   

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1. Journalize the following transactions of Laporte Communications, Inc.: 2010 Jan 1 Issued $7,000,000 of 9%, 10-year bonds payable at 96. Jul 1 Paid semiannual interest and amortized bonds by the straight-line method on the 9% bonds payable. Dec 31 Accrued semiannual interest expense and amortized bonds by the straight-line method on the 9% bonds payable. 2011 Jan 1 Paid semiannual interest. 2020 Jan 1 Paid the 9% bonds at maturity. 2. At December 31, 2010, after all year-end adjustments, determine the carrying amount of Laporte Communications bonds payable, net. 3. For the six months ended July 1, 2010, determine for Laporte Communications, Inc.: a. Interest expense b. Cash interest paid What causes interest expense on the bonds to exceed cash interest paid?