| $46,500. B. | On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at 104 resulting in a 4% premium. They had a 20 year term and a stated rate of interest of 7%. Which of the following journal entries is necessary to recognize the bond issue on January 1, Year 1? | | Account Titles | Debit | Credit | | Cash | 52,000 | | | Premium on Bonds Payable | | 2,000 | | Bonds Payable | | 50,000 | | Account Titles | Debit | Credit | | Cash | 52,000 | | | Bonds Payable | | 52,000 | | Account Titles | Debit | Credit | | Cash | 54,000 | | | Premium on Bonds Payable | | 2,000 | | Bonds Payable | | 52,000 | | Account Titles | Debit | Credit | | Cash | 48,000 | | | Premium on Bonds Payable | 2,000 | | | Bonds Payable | | 50,000 | C. | On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at 104resulting in a 4% premium. They had a 20 year term and a stated rate of interest of 7%.Assuming a straight-line amortization of the premium, the amount of interest expense recognized on the December 31, Year 1 income statement is | |
