Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $7,200,000 of 10-year, 9% bonds at a market (effective) interest rate of 7%, receiving cash of $8,223,290. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance bonds on April 1, 20Y1. If an amount box does not require an entry, leave it blank. Cash - Premium on Bonds Payable Bonds Payable Feedback Check My Work b. Journalize the entry to record the first interest payment on October 1, 20Y1, and amortization of bond premium for six months, using the straight-line method. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense

Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $7,200,000 of 10-year, 9% bonds at a market (effective) interest rate of 7%, receiving cash of $8,223,290. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance bonds on April 1, 20Y1. If an amount box does not require an entry, leave it blank. Cash - Premium on Bonds Payable Bonds Payable Feedback Check My Work b. Journalize the entry to record the first interest payment on October 1, 20Y1, and amortization of bond premium for six months, using the straight-line method. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense

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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