Discount Amortization On the first day of the fiscal year, a company issues a $1,400,000, 10%, 9-year bond that pays semiannual interest of $70,000 ($1,400,000 10% ), receiving cash of $1,180,919. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. blank Interest Expense Interest Expense Discount on Bonds Payable Discount on Bonds Payable Cash Cash Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $1,500,000, 12%, 7-year bond that pays semiannual interest of $90,000 ($1,500,000 12% ), receiving cash of $1,571,922. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. blank Cash Cash Premium on Bonds Payable Premium on Bonds Payable Bonds Payable Bonds Payable Feedback Area Feedback Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. Premium Amortization On the first day of the fiscal year, a company issues a $1,800,000, 9%, 5-year bond that pays semiannual interest of $81,000 ($1,800,000 9% ), receiving cash of $1,949,698. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. blank Interest Expense Interest Expense Premium on Bonds Payable Premium on Bonds Payable Cash Cash Redemption of Bonds Payable A $990,000 bond issue on which there is an unamortized premium of $68,000 is redeemed for $762,000. Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank. blank Bonds Payable Bonds Payable Premium on Bonds Payable Premium on Bonds Payable Gain on Redemption of Bonds Gain on Redemption of Bonds Cash Cash Feedback Area Feedback The gain or loss is the balancing amount needed to complete the entry and is the difference between the carrying amount of the bonds and the redemption price. A corporation usually redeems its bonds at a price different from that of the carrying amount of the bonds. Entries for Issuing Bonds Abioye Co. produces and distributes semiconductors for use by computer manufacturers. Abioye Co. issued $330,000 of 25-year, 10% bonds on May 1 of the current year at face value, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. Dec. 31 Recorded accrued interest for two months. Journalize the entries to record the above selected transactions for the current year. If an amount box does not require an entry, leave it blank. Round your answers to whole number. May 1 Cash Cash Bonds Payable Bonds Payable Nov. 1 Interest Expense Interest Expense Cash Cash Dec. 31 Interest Expense Interest Expense Interest Payable Interest Payable Feedback Area