Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method

Daan Corporation wholesales repair products to equipment manufacturers. On April 1, 2014, Daan Corporation issued $8,500,000 of 8-year, 8% bonds at a market (effective) interest rate of 6%, receiving cash of $9,567,694. Interest is payable semiannually on April 1 and October 1.

Questions Exercise 12.7 (Algorithmic) Question 1 of 1 Check My Work (2 remaining) eBook Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Daan Corporation wholesales repair products to equipment manufacturers. On April 1, 2014, Daan Corporation issued $8,500,000 of 8-year, 8% bonds at a market (effective) interest rate of 6%, receiving cash of $9,567,694. Interest is payable semiannually on April 1 and October 1. Hint(s) (H Hide a. Journalize the entry to record the issuance of bonds on April 1, 2014. For a compound transaction, if an amount box does not require an entry, leave it blank. Bonds Payable Show All Feedback Hide b. Joumalize the entry to record the first interest payment on October 1, 2014, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.) For a compound transaction, if an amount box does not require an entry, leave it blank. (Interest Expense Show All Feedback Check My Work (2 remaining)