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CengageNOWv2| Online teachin × Cengage Learning X b Answered: Find the locations and x i v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLoca. ☆ 00 Ch 14-2 Practice Exercises Premium Amortization On the first day of the fiscal year, a company issues a $7,700,000, 7%, 5-year bond that pays semiannual interest of $269,500 ($7,700,000 × 7% × ½), receiving cash of $8,737,489. 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 166,751 X Premium on Bonds Payable 102,749 X Cash 269,500 Feedback ▼ 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. 3:15 PM P Type here to search 3/17/2020 II

CengageNOWv2| Online teachin × Cengage Learning X b Answered: Find the locations and x i v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLoca. ☆ 00 Ch 14-2 Practice Exercises Premium Amortization On the first day of the fiscal year, a company issues a $7,700,000, 7%, 5-year bond that pays semiannual interest of $269,500 ($7,700,000 × 7% × ½), receiving cash of $8,737,489. 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 166,751 X Premium on Bonds Payable 102,749 X Cash 269,500 Feedback ▼ 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. 3:15 PM P Type here to search 3/17/2020 II

FINANCIAL ACCOUNTING
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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CengageNOWv2| Online teachin × Cengage Learning X b Answered: Find the locations and x i v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLoca. ☆ 00 Ch 14-2 Practice Exercises Premium Amortization On the first day of the fiscal year, a company issues a $7,700,000, 7%, 5-year bond that pays semiannual interest of $269,500 ($7,700,000 × 7% × ½), receiving cash of $8,737,489. 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 166,751 X Premium on Bonds Payable 102,749 X Cash 269,500 Feedback ▼ 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. 3:15 PM P Type here to search 3/17/2020 II
Transcribed Image Text:CengageNOWv2| Online teachin × Cengage Learning X b Answered: Find the locations and x i v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLoca. ☆ 00 Ch 14-2 Practice Exercises Premium Amortization On the first day of the fiscal year, a company issues a $7,700,000, 7%, 5-year bond that pays semiannual interest of $269,500 ($7,700,000 × 7% × ½), receiving cash of $8,737,489. 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 166,751 X Premium on Bonds Payable 102,749 X Cash 269,500 Feedback ▼ 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. 3:15 PM P Type here to search 3/17/2020 II
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