How do I figure up the premium amortized on June 30, Year 2 and premium amortized on Dec. 31, Year 2? a.b.Year 1July 1Oct. 1Dec. 3131Year 2June 30Sept. 30Dec. 3131Year 3June 30Sept. 30CashBonds PayablePremium on Bonds PayableCashNotes PayableInterest ExpenseInterest PayableInterest ExpensePremium on Bonds PayableCashInterest ExpensePremium on Bonds PayableCashNotes PayableInterest ExpenseInterest PayableCashInterest ExpenseInterest PayableInterest ExpensePremium on Bonds PayableCashBonds PayablePremium on Bonds PayableCashGain on Redemption of BondsNotes PayableInterest ExpenseInterest PayableCashYear 1 interest expense:Year 2 interest expense:$2,093,148$ 4,203,069Initial carrying amount of bondsPremium amortized on December 31, Year 1Premium amortized on June 30, Year 2Premium amortized on December 31, Year 2Carrying amount of bonds, December 31, Year 2$ 62,817,040(390,852)$ 61,644,48462,817,040450.0009.0002,084,148390,8522,084,148390,85261,34227,0009,0007,7732,084,148390,85255,000,0006,253,63266,24923,3207,77355,000,0007,817,040450,0009,0002,475,0002,475,00097,3427,7732,475,00056,650,0004,603,63297,3424

When bonds are issued in excess over their face value , they are issued at a premium. Premium on…

Answered: t. 1 c. 31 Bonds Payable Premium on…

t. 1 c. 31 Bonds Payable Premium on Bonds Payable Cash Notes Payable Interest Expense Interest Payable 450,000 9,000 2,084,148

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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Question

How do I figure up the premium amortized on June 30, Year 2 and premium amortized on Dec. 31, Year 2?

a.
b.
Year 1
July 1
Oct. 1
Dec. 31
31
Year 2
June 30
Sept. 30
Dec. 31
31
Year 3
June 30
Sept. 30
Cash
Bonds Payable
Premium on Bonds Payable
Cash
Notes Payable
Interest Expense
Interest Payable
Interest Expense
Premium on Bonds Payable
Cash
Interest Expense
Premium on Bonds Payable
Cash
Notes Payable
Interest Expense
Interest Payable
Cash
Interest Expense
Interest Payable
Interest Expense
Premium on Bonds Payable
Cash
Bonds Payable
Premium on Bonds Payable
Cash
Gain on Redemption of Bonds
Notes Payable
Interest Expense
Interest Payable
Cash
Year 1 interest expense:
Year 2 interest expense:
$2,093,148
$ 4,203,069
Initial carrying amount of bonds
Premium amortized on December 31, Year 1
Premium amortized on June 30, Year 2
Premium amortized on December 31, Year 2
Carrying amount of bonds, December 31, Year 2
$ 62,817,040
(390,852)
$ 61,644,484
62,817,040
450.000
9.000
2,084,148
390,852
2,084,148
390,852
61,342
27,000
9,000
7,773
2,084,148
390,852
55,000,000
6,253,632
66,249
23,320
7,773
55,000,000
7,817,040
450,000
9,000
2,475,000
2,475,000
97,342
7,773
2,475,000
56,650,000
4,603,632
97,342
4

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