Exercise 10-15A Straight-line amortization of a bond premium LO 10-5

{The following information applies to the questions displayed below.] The Square Foot Grill, Inc. issued $230,000 of 10-year, 6 percent bonds on July 1, Year 1, at 104. Interest is payable in cash semiannually on June 30 and December 31. The straight-line method is used for amortization.

Exercise 10-15A Part a

Required a. Prepare the journal entries to record issuing the bonds and any necessary journal entries for Year 1 and Year 2. Post the journal entries to T-accounts. Prepare any necessary closing entries for Year 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

PLEASE SHOW ALL WORK

Required information Exercise 10-15A Straight-line amortization of a bond premium LO 10-5 The following information applies to the questions displayed below.] The Square Foot Grill, Inc. issued $230,000 of 10-year, 6 percent bonds on July 1, Year 1, at 104. Interest is payable in cash semiannually on June 30 and December 31. The straight-line method is used for amortization. Exercise 10-15A Part a Required a. Prepare the journal entries to record issuing the bonds and any necessary journal entries for Year 1 and Year 2. Post the journal entries to T-accounts. Prepare any necessary closing entries for Year 1. (f no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 4 5 6 Record the issue of bonds payable with premium. Note: Enter debits before credits. Date General Journal Credit Debit Jul 01 View general journal Record entry Clear entry Import a new list 1 Record the issue of bonds payable with premium. 2 Record the interest expenses and amortization for bonds payable. 3 Record the closing entry for expenses. 4 Record the interest expenses and amortization for bonds / payable. 5 Record the interest expenses and amortization for bonds payable. 6 Record the closing entry for expenses. Cash Premium on Bonds Payable Year 1 Year 1 End. Bal End. Bal 0 Year 2 Year 2 End. Bal. End. Bal. Bonds payable Year 1 End. Bal. 0 Retained Earnings Interest Expense Year 1 Year 1 End. Bal. End. Bal. 0 Year 2 Year 2 End. Bal. End. Bal 0