Exercise 15-18 a-c (Part Level Submission) Ivanhoe Company issued $265,000, 6%, 10-year bonds on January 1, 2020, for $285,461. This price resulted in an effective-interest rate of 5% on the bonds. Interest is payable annually on January 1. Ivanhoe uses the effective-interest method to amortize bond premium or discount.

Jan. 1 Cash 285,461 - Premium on Bonds Payable 20,461 Bonds Payable 265,000 SHOW LIST OF ACCOUNTS SHOW ANSWER LINK TO TEXT (b) Your answer is partially correct. Try again. Prepare the journal entry to record the accrual of interest and the premium amortization on December 31, 2020. (Rour entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 interest Expense 17,946.1 Premium on Bonds Payable 2,046.1 Interest Payable 15,900