Issuing bonds at a discount

On the first day of the fiscal year, a company issues a $3,400,000, 10%, 9-year bond that pays semiannual interest of $170,000 ($3,400,000 10% ), receiving cash of $2,867,943.

Journalize the bond issuance. If an amount box does not require an entry, leave it blank.

blank	Account	Debit	Credit
blank	Bonds PayableCashInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Bonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Bonds PayableCashDiscount on Bonds PayableInterest PayablePremium on Bonds Payable	- Select -	- Select -

Discount amortization

On the first day of the fiscal year, a company issues a $3,300,000, 12%, 9-year bond that pays semiannual interest of $198,000 ($3,300,000 12% ), receiving cash of $2,968,049.

Using straight-line amortization, journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

blank	Account	Debit	Credit
blank	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Accounts PayableBonds PayableCashInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -