Assume that on January 1 of the current year, $100,000 of 5-year, 12% bonds, with interest payable semiannually, were sold for $103,769 (11% market rate). Give the account to be debited (1) and the amount and the account to be credited (2) and the amount to journalize the amortization of the premium using the straight- line method of amortization when the first interest payment is made on June 30. Round to the nearest whole dollar. JOURNA L Page 25 DATE DESCRIPTION P.REF. DEBIT CREDIT June 30 (1) ? (2) ? debit (1) Premium on Bonds Payable $376.90 and credit (2) Cash $736.90 debit (1) Premium on Bonds Payable $376.90 and credit (2) Interest Expense $376.90 debit (1) Premium on Bonds Payable $3,769 and credit (2) Discount on Bonds Payable $3,769 debit (1) Bonds Payable $3,769 and (2) credit Interest Expense $3,769

Assume that on January 1 of the current year, $100,000 of 5-year, 12% bonds, with interest payable semiannually, were sold for $103,769 (11% market rate). Give the account to be debited (1) and the amount and the account to be credited (2) and the amount to journalize the amortization of the premium using the straight- line method of amortization when the first interest payment is made on June 30. Round to the nearest whole dollar. JOURNA L Page 25 DATE DESCRIPTION P.REF. DEBIT CREDIT June 30 (1) ? (2) ? debit (1) Premium on Bonds Payable $376.90 and credit (2) Cash $736.90 debit (1) Premium on Bonds Payable $376.90 and credit (2) Interest Expense $376.90 debit (1) Premium on Bonds Payable $3,769 and credit (2) Discount on Bonds Payable $3,769 debit (1) Bonds Payable $3,769 and (2) credit Interest Expense $3,769

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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