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Premium amortization On the first day of the fiscal year, a company issues a $8,800,000, 7%, 8-year bond that pays semiannual interest of $308,000 (S8, 800,000 \times 7% \times (1)/(2)), receiving cash of $9,948, 839. Using straight-line amortization, 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? Premium on Bonds Payable (Debit) 71802 Cash ?

Premium amortization On the first day of the fiscal year, a company issues a $8,800,000, 7%, 8-year bond that pays semiannual interest of $308,000 (S8, 800,000 \times 7% \times (1)/(2)), receiving cash of $9,948, 839. Using straight-line amortization, 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? Premium on Bonds Payable (Debit) 71802 Cash ?

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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Premium amortization On the first day of the fiscal year, a company issues a $8,800,000, 7%, 8-year bond that pays semiannual interest of $308,000 ($8,800,000 \times 7% \times (1)/(2)), receiving cash of $9,948, 839. Using straight-line amortization, 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 ? Premium on Bonds Payable (Debit) 71802 Cash ?
Transcribed Image Text:Premium amortization On the first day of the fiscal year, a company issues a $8,800,000, 7%, 8-year bond that pays semiannual interest of $308,000 ($8,800,000 \times 7% \times (1)/(2)), receiving cash of $9,948, 839. Using straight-line amortization, 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 ? Premium on Bonds Payable (Debit) 71802 Cash ?
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