Oriole Company issued $760,000, 7%, 10-year bonds on January 1, 2022, for $815,933. This price resulted in an effective-interest rate of 6% on the bonds. Interest is payable annually on January 1. Oriole uses the effective-interest method to amortize bond premium or discount.     1. Prepare the schedule using effective-interest method to amortize bond premium or discount of Oriole.   2. Prepare the journal entry to record the issuance of the bonds.    3. Prepare the journal entry to record the accrual of interest and the premium amortization on December 31, 2022.   4. Prepare the journal entry to record the payment of interest on January 1, 2023.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Oriole Company issued $760,000, 7%, 10-year bonds on January 1, 2022, for $815,933. This price resulted in an effective-interest rate of 6% on the bonds. Interest is payable annually on January 1. Oriole uses the effective-interest method to amortize bond premium or discount.
 
 
1. Prepare the schedule using effective-interest method to amortize bond premium or discount of Oriole.
 
2. Prepare the journal entry to record the issuance of the bonds. 
 
3. Prepare the journal entry to record the accrual of interest and the premium amortization on December 31, 2022.
 
4. Prepare the journal entry to record the payment of interest on January 1, 2023. 
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