Yale Corporation issued $54,000 , 8 % (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1. Yale amortizes any bond discount or premium using the effective interest amortization method. If the bonds were sold to yield 7%, provide journal entries to be made at each of the following dates. a. January 1, for issuance of bonds. b. June 30, for the first interest payment. • Note: Round your answer to the nearest whole dollar. Date a. Jan. 1 Cash Account Name Premium on Bonds Payable Bonds Payable To record the issuance of bonds. b. June 30 Interest Payable Interest Expense Cash To record the first interest payment. > > > > > > Dr. 57,837 0 0 847 847 0 Cr. 0 3,837 54,000✔ 0 x 0x 2,160✔

Yale Corporation issued $54,000 , 8 % (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1. Yale amortizes any bond discount or premium using the effective interest amortization method. If the bonds were sold to yield 7%, provide journal entries to be made at each of the following dates. a. January 1, for issuance of bonds. b. June 30, for the first interest payment. • Note: Round your answer to the nearest whole dollar. Date a. Jan. 1 Cash Account Name Premium on Bonds Payable Bonds Payable To record the issuance of bonds. b. June 30 Interest Payable Interest Expense Cash To record the first interest payment. > > > > > > Dr. 57,837 0 0 847 847 0 Cr. 0 3,837 54,000✔ 0 x 0x 2,160✔

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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