Cheyenne Corp. issued $370,000, 6%, 20-year bonds on January 1, 2017, for $330,802. This price resulted in an effective-interest rate of 7% on the bonds. Interest is payable annually on January 1. Cheyenne uses the effective-interest method to amortize bond premium or discount.

us Ch 10 Homework Question 1 of 5 0.78/2 Cheyenne Corp, issued $370,000,6%, 20-year bonds on January 1, 2017 for $330,802. This price resulted in an effective-interest rate of 7% on the bonds. Interest is payable annually on January 1. Cheyenne uses the effective-interest method to amortize bond premium or discount. (1) Your answer is correct Prepare the schedule using effective-interest method to amortize bond premium or discount of Cheyenne Corp. (Round answers to O decimal places, eg. 5,250.) Interest Expense to Be Recorded Discount Amortization Unamortized Discount Bond Carrying Value $ $ 39198 $ 330802 23156 956 38242 331758 23223 1023 37219 332783 e Textbook and Media h 10 Homework Question 1 of 5 > 0.78/2 ITI (a2) Your answer is partially correct. Prepare the journal entry to record the issuance of the bonds. (Round answers to O decimal places, eg. 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 Cash 330802 e Textbook and Media List of Accounts Save for Later Attempts: 2 of 3 used Submit