eBook Show Me How

Question Content Area

Entries for issuing bonds and amortizing premium by straight$-$line method

Smiley Company wholesales repair products to equipment manufacturers. On April $1,20$Y$1,$ Smiley issued $$4,300,000$ of $8-$year, $10\%$ bonds at a market $($effective$)$ interest rate of $9\%,$ receiving cash of $$4,541,532.$ Interest is payable semiannually on April $1$ and October $1.$

Question Content Area

a$.$ Journalize the entry to record the issuance of bonds on April $1,20$Y$1.$ If an amount box does not require an entry, leave it blank.