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Entries for issuing bonds and amortizing premium by straight - line method Smiley Corporation wholesales repair products to equipment manufacturers. On April 1 , 2
Entries for issuing bonds and amortizing premium by straightline method
Smiley Corporation wholesales repair products to equipment manufacturers. On April Y Smiley issued $ of year, bonds at a market effective interest
rate of receiving cash of $ Interest is payable semiannually on April and October
a Journalize the entry to record the issuance of bonds on April Y If an amount box does not require an entry, leave it blank.
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Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account.
The straightline method of amortization provides equal amounts of amortization over the life of the bond.
b Journalize the entry to record the first interest payment on October Y and amortization of bond premium for months, using the straightline method. Round to
the nearest dollar. If an amount box does not require an entry, leave it blank.
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