an Corporation wholesales repair products to equipment manufacturers. On April 1, 2016, Daan Corporation issued $3,600,000 of 9-year, 9% bonds at a market (effective) interest rate of 89 ceiving cash of $3,827,866. Interest is payable semiannually on April 1 and October 1. Journalize the entry to record the issuance of bonds on April 1, 2016. For a compound transaction, if an amount box does not require an entry, leave it blank. Cash 3,827,866 Premium on Bonds Payable 3,600,000 X Bonds Payable 227,866 X Feedback Y Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond. Journalize the entry to record the first interest payment on October 1, 2016, and amortization of bond premium for six months, using the straight-line method. The bond premium amortizat mbined with the semiannual interest payment. (Round to the nearest dollar.) For a compound transaction, if an amount box does not require an entry, leave it blank. Interest Expense Premium on Bonds Payable

an Corporation wholesales repair products to equipment manufacturers. On April 1, 2016, Daan Corporation issued $3,600,000 of 9-year, 9% bonds at a market (effective) interest rate of 89 ceiving cash of $3,827,866. Interest is payable semiannually on April 1 and October 1. Journalize the entry to record the issuance of bonds on April 1, 2016. For a compound transaction, if an amount box does not require an entry, leave it blank. Cash 3,827,866 Premium on Bonds Payable 3,600,000 X Bonds Payable 227,866 X Feedback Y Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond. Journalize the entry to record the first interest payment on October 1, 2016, and amortization of bond premium for six months, using the straight-line method. The bond premium amortizat mbined with the semiannual interest payment. (Round to the nearest dollar.) For a compound transaction, if an amount box does not require an entry, leave it blank. Interest Expense Premium on Bonds Payable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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