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NON-CURRENT LIABILITIES- SECTION B 11 MARKS On June 30 2017 Layton Inc sold $1200000 face value of bonds

PART 5: NON-CURRENT LIABILITIES- SECTION B (11 MARKS) On June 30, 2017, Layton, Inc. sold $1,200,000 (face value) of bonds. T

PART 5: NON-CURRENT LIABILITIES- SECTION B (11 MARKS) On June 30, 2017, Layton, Inc. sold $1,200,000 (face value) of bonds. The bonds are dated June 30, 2017, pay interest semi-annually on December 31 and June 30, and will mature on June 30, 2020. The following schedule was prepared by the accountant for 2017: Semi-annual Interest to Unamortized Amount Amortized cost $62,906 53,422 Interest Bond Interest Period Expense be Paid Amortization $1,137,094 1,146,578 $9,484 $36,000 $45,484 Dec 31, 2017 On the basis of the above information, answer the following questions. (Round your answer to the nearest dollar or percent.) Requirement 13 (2 MARKS): What is the contractual rate of interest for this bond issue? Requirement 14 (2 MARKS): What is the market rate of interest for this bond issue? Requirement 15 (2 MARKS): What was the selling price of the bonds as a percentage of the face value? Requirement 16 (2 MARKS): Prepare the journal entry to record the sale of the bond issue on June 30, 2017 Requirement 17 (3 MARKS): Prepare the journal entry to record the payment of interest and amortization on December 31, 2017.

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