INSTRUCTIONS: Federer Corporation issued $$540,000$ in bonds

for $$498,600.$ The bonds had a stated rate of $12\%$ and pay interest

quarterly.

PLEASE NOTE: For accounts having similar accounting treatment

$($DR or CR$),$ you are to record accounts in the same order as shown

in the textbook. You must enter the account names exactly as

written above and all dollar amounts will be rounded to whole

dollars with $"$$$"$ and commas as needed $($i$.$e$.$ $$12,345).$

A$.$ What is the journal entry to record the issuance of the bonds?

$[$In the answer boxes where no information should appear, if no

account name needs to be included type "None" and if no dollar

amount is needed type $"$$$0"$ with no quotation marks$]$INSTRUCTIONS: Federer Corporation issued $$540,000$ in bonds for $$498,600.$ The bonds had a stated rate of $12\%$ and pay interest quarterly.

Premium on Bonds Payable Interest Income Discount on Bonds Payable

Interest Expense Cash Bonds Payable

PLEASE NOTE: For accounts having similar accounting treatment $($DR or CR$),$ you are to record accounts in the same order as shown in the textbook. You must enter the account names exactly as written above and all dollar amounts will be rounded to whole dollars with $"$$$"$ and commas as needed $($i$.$e$.$ $$12,345).$

A$.$ What is the journal entry to record the issuance of the bonds? $[$In the answer boxes where no information should appear, if no account name needs to be included type "None" and if no dollar amount is needed type $"$$$0"$ with no quotation marks$]$

Account Debit Credit

B$.$ What is the journal entry to record the first interest payment? $($Note: Do not consider the premium or discount.$)$

Account Debit Credit