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help me with the ones i got wrong please Amortize Premium by Interest Method Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Shunda
help me with the ones i got wrong please Amortize Premium by Interest Method Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Shunda issued $30,000,000 of five-year, 10% bonds at a market (effective) interest rate of 8%, receiving cash of $32,433,150. Interest is payable semiannually. Shunda's fiscal year begins on January 1. The company uses the interest method a. Journalize the entries to record the following: 1. Sale of the bonds. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Cash 32.433.150 Bonds Payable 2,433,150 30,000 Feedback Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. 2. First semiannual interest payment, including amortization of premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense 1.297,326 202,674 Premium on Bonds Payable Cash 1 5on non . Check My Work 4 more Check My Work uses remaining. Previous Next Compare the rate on the bonds and the market rate. 3. Second semiannual interest payment, including amortization of premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense 1.289,219 Premium on Bonds Payable 161420 x Cash 1,500,000 Feedback Check My Work As the discount or premium is amortized, the carrying amount of the bond changes. As a result, interest expense also changes each period. Compare the rate on the bonds and the market rate. b. Determine the bond interest expense for the first year. Round to the nearest dollar. 3,000,000 Annual interest paid Less premium amortized 210,781 2,635,906 Interest expense for first year Previous Next Check My Work 4 more Check My Work uses remaining
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