Journal entries on Long-term liabilities

Answer Premium on Bonds Payable Answer Answer Interest Payable Answer To record the interest accrued on bonds payable 4) Payment of interest and amortization of premium or discount on April 30, 2021. Date Account Title and Explanation Debit Credit Apr 30 Answer Interest Expense Answer Answer! Interest Payable Answer Answer! Premium on Bonds Payable Answer Cash Answer Answer To record payment of interest and amortization 5) Redemption of the bond for its face value one year before maturity on May 1. Date Account Title and Explanation Debit Credit May 1 Answerl Bonds Payable Answer Answer Premium on Bonds Payable Answer Answer Cash Answer Redemption of band8. On May 1, 2020, Hrd Corporation issued a 4-year bond worth $396,000 with an interest rate of 9% per annum. Interest is to be paid semi-annually on October 31 and April 30. At the time of the issuance, the market interest rate was 6%. Hrd Corporation amortizes any pre- mium or discount using the effective interest method. Calculate the bond issue price and the resulting premium or discount. Bond Issue Price: $Answer Premium or Discount: $Answer b) Prepare journal entries to record the following bonds payable transac- tions. 1) Issuance of bonds on May 1, 2020. Date Account Title and Explanation Debit Credit May 1 Answer Cash Answer! Answer Bonds Payable Answer Answer Premium on Bonds Payable Answer To record bond issuance 2) Payment of interest and amortization of premium or discount on Oc- tober 31, 2020. Date Account Title and Explanation Debit Credit Oct 31 Answer Interest Expense Answer Answer Premium on Bonds Payable Answer Answer Cash Answer To record first payment of interest and amortization 3) Accrual of interest and amortization of premium or discount on De- cember 31, 2020, which is the company's year-end. Date Account Title and Explanation Debit Credit Dec 31 Answer Interest Expense