Answer Happy

7 For additional funds to assist in with their expansion, Cabot Corporation issues 6%, four-year bonds, on January 1 of this year, with a par value of $95,000 and semiannual interest payments. Unamortized Discount Semiannual Period-End January 1, issuance (0) $6,633 Carrying Value $88,367 89,196 90,025 (1) June 30, first payment 5,804 4,975 (2) December 31, second payment Use the above straight-line bond amortization table and prepare journal entries for the following. Copy these journal entries to the Project "file part" Attachment 2. Remember to change interest expense to "operating" or "nonoperating expense" as appropriate. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c) The second interest payment on December 31. View transaction list X 1 Record the issuance of the bonds on January 1. 2 Record the first interest payment on June 30. 3 Record the second interest payment on December 31. 8 points Skipped eBook Print Mc Credit
8 On January 10, the end of the first pay period of the year, Cabot Corporation's employees earned $22,000 of sales and office salaries. Withholdings from the employees' salaries include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $3,800 of federal income taxes, $429 of medical insurance deductions, and $200 of union dues. No employee earned more than $7,000 in this first period. Prepare the journal entry to record Cabot's January 10 wages and salaries expense and related liabilities. Skipped Note - For Project purposes, you can assume 26 pay periods a year are consistent with these calculations. Calculate annual expenses by multiplying amounts by 26. View transaction list eBook Journal entry worksheet Print Record the employee payroll for period. Nota Enber debits before credits. Date General Journal Debit Credit Jan 15 9 points Mc Graw