Cort Inc. was authorized to issue $1,000,000 of 8 percent bonds. On April 1, 2019, the corporation issued bonds with a face value of $200,000 at a price of 102.0. The bonds mature 10 years from the date of issue. Interest is payable semiannually on October 1 and April 1. Using the data given above, what amount of premium will be amortized by Cort Inc. on October 1, 2019, using straight-line amortization? Prepare the general journal entry to record this amortization.

Complete this question by entering your answers in the tabs below.

• Amortized Premium
• General Journal

Using the data given above, what amount of premium will be amortized by Cort Inc. on October 1, 2019, using straight-line amortization?

Amortized premium on October 1, 2019

Journal entry worksheet

• Record the amortization of premium for six months.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Oct 01, 2019