InstructionsOn the first day of the fiscal year, a company issues a $1,350,000, 11%, five-year bond that pays semiannual interest of $74,250 ($1,350,000 x 11% x %),receiving cash of $1,512,610.Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. Refer to the Chart of Accounts for exactwording of account titles.10:49 PM0 404/28/2022MacBook Air 13DATEJun. 30FeedbackCashInterest ExpenseDESCRIPTIONPremium on Bonds PayableJOURNAL2POST. REF.MacBook AirDEBIT57,989.0016,261.00Score: 29/37CREDIT74,250.00ACCOUNTING EQULIABILITIESASSETS↑Points:104/28

Solution Concept In the amortization schedule , when the monthly payment includes the interest and…

Answered: DATE Jun. 30 Cash Interest Expense…

DATE Jun. 30 Cash Interest Expense DESCRIPTION Premium on Bonds Payable POST. REF. DEBIT 57,989.00 16,261.00 CREDIT 74,250.00 ACCOUNTING LIABILITI 1 ASSETS ↑ Points:

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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