Your answer is partially correct. On January 1, 2020, Oriole Enterprises issued 8%, 20-year bonds with a face amount of $5,350,000 at 102. Interest is payable annually on January 1. Prepare the entries to record the issuance of the bonds and the first annual interest accrual and amortization assuming that the company uses straight-line amortization. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Jan. 1 Dec. 31 Account Titles and Explanation Cash Bonds Payable Premium on Bonds Payable Interest Expense Premium on Bonds Payable Interest Payable Debit 5457000 385200 42800 Credit 5350000 107000 428000

Your answer is partially correct. On January 1, 2020, Oriole Enterprises issued 8%, 20-year bonds with a face amount of $5,350,000 at 102. Interest is payable annually on January 1. Prepare the entries to record the issuance of the bonds and the first annual interest accrual and amortization assuming that the company uses straight-line amortization. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Jan. 1 Dec. 31 Account Titles and Explanation Cash Bonds Payable Premium on Bonds Payable Interest Expense Premium on Bonds Payable Interest Payable Debit 5457000 385200 42800 Credit 5350000 107000 428000

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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How do you solve portion B and C. I don't understand the calcuations.