Exercise 10-22

Flint Corporation issued $445,000, 8%, 20-year bonds on January 1, 2017, for $369,229. This price resulted in an effective-interest rate of 10% on the bonds. Interest is payable annually on January 1. Flint uses the effective-interest method to amortize bond premium or discount.

Prepare the schedule using effective-interest method to amortize bond premium or discount of Flint Corporation. (Round answers to O decimal places, e.g. 5,250.) Interest Interest to Interest Expense Periods Discount Amortization Unamortized Discount Bond Carrying Value Be Paid to Be Recorded Issue date SHOW LIST OF ACCOUNTS Prepare the journal entry to record the issuance of the bonds. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2017 SHOW LIST OF ACCOUNTS