Problem 15-07A a-d The following is taken from the Sunland Company balance sheet. Sunland Company Balance Sheet (partial) December 31, 2020 Current Liabilities Interest payable (for 12 months from January 1 to December 31) $256,800 Long-term Liabilities Bonds payable, 8% due January 1, 2028 $3,210,000 Add: Premium on bonds payable 209,000 $3,419,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. Sunland uses straight-line amortization for any bond premium or discount. From December 31, 2020, the bonds will be outstanding for an additional 10 years (120 months). Prepare the adjusting entry at December 31, 2022, to amortize bond premium and to accrue interest on the remaining bonds. Date Account Titles and Explanation Debit Credit Dec. 31, 2022 Interest Expe Premium on Interest Pay:
Problem 15-07A a-d The following is taken from the Sunland Company balance sheet. Sunland Company Balance Sheet (partial) December 31, 2020 Current Liabilities Interest payable (for 12 months from January 1 to December 31) $256,800 Long-term Liabilities Bonds payable, 8% due January 1, 2028 $3,210,000 Add: Premium on bonds payable 209,000 $3,419,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. Sunland uses straight-line amortization for any bond premium or discount. From December 31, 2020, the bonds will be outstanding for an additional 10 years (120 months). Prepare the adjusting entry at December 31, 2022, to amortize bond premium and to accrue interest on the remaining bonds. Date Account Titles and Explanation Debit Credit Dec. 31, 2022 Interest Expe Premium on Interest Pay:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 15-07A a-d
The following is taken from the Sunland Company balance sheet.
Sunland Company
Balance Sheet (partial)
December 31, 2020
Current Liabilities
Interest payable (for 12 months from January 1 to
December 31)
$256,800
Long-term Liabilities
Bonds payable, 8% due January 1, 2028
$3,210,000
Add: Premium on bonds payable
209,000 $3,419,000
Interest is payable annually on January 1. The bonds are callable on any annual interest
date. Sunland uses straight-line amortization for any bond premium or discount. From
December 31, 2020, the bonds will be outstanding for an additional 10 years (120
months).
Prepare the adjusting entry at December 31, 2022, to amortize bond premium and to
accrue interest on the remaining bonds.
Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2022
Interest Expe
Premium on
Interest Pay:
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