Premium amortization On the first day of the fiscal year, a company issues a $8,800,000, 7%, 8-year bond that pays semiannual interest of $308,000 (S8, 800,000 \times 7% \times (1)/(2)), receiving cash of $9,948, 839. Using straight-line amortization, journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense? Premium on Bonds Payable (Debit) 71802 Cash ?
Premium amortization On the first day of the fiscal year, a company issues a $8,800,000, 7%, 8-year bond that pays semiannual interest of $308,000 (S8, 800,000 \times 7% \times (1)/(2)), receiving cash of $9,948, 839. Using straight-line amortization, journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense? Premium on Bonds Payable (Debit) 71802 Cash ?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 95PSB
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