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Ayayai Corp. issued $350,000, 6%, 20-year bonds on January 1, 2017, for $312,921. This price resulted in an effective-interest rate of 7% on the bonds.

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Ayayai Corp. issued $350,000, 6%, 20-year bonds on January 1, 2017, for $312,921. This price resulted in an effective-interest rate of 7% on the bonds. Interest is payable annually on January 1. Ayayai uses the effective-interest method to amortize bond premium or discount Prepare the schedule using effective-interest method to amortize bond premium or discount of Ayayai Corp.. (Round answers to O decimal places, e.g. 5,250.) Interest Periods Interest to Be Paid Interest Expense to Be Recorded Discount Amortization Unamortized Discount Issue date List of Accounts Prepare the journal entry to record the issuance of the bonds. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2017 List of Accounts Prepare the journal entry to record the accrual of interest and the discount amortization on December 31, 2017. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2017 Prepare the journal entry to record the payment of interest on January 1, 2018. (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2018 List of Accounts

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