Calculato

2. On the first day of the fiscal year, a company issues a $952,000, 6%, 10-year bond that pays semiannual interest of $28,560 ($952,000 6% 1/2), receiving cash of $999,600.

Required:

Journalize the entry to record the first interest payment and amortization of premium using the straight-line method. Refer to the Chart of Accounts for exact wording of account titles.

Journalize the entry to record the first interest payment and amortization of premium using the straight-line method on December 31.

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3

On the first day of the fiscal year, a company issues an $946,000, 8%, 5-year bond that pays semiannual interest of $37,840 ($946,000 8% 1/2), receiving cash of $889,240.