Larkspur, Inc. sold $2,700,000, 4%, 10-year bonds on January 1, 2022. The bonds were dated January 1 and pay interest annually on January 1. Larkspur, Inc. uses the straight-line method to amortize bond premium or discount. The bonds were sold at 104. (a) Your Answer Correct Answer (Used) Prepare the journal entry to record the issuance of the bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Jan. 1, 2022 Account Titles and Explanation Cash Premium on Bonds Payable Bonds Payable Debit 2,808,000 Credit 108,000 2,700,000

Larkspur, Inc, sold $2,700,000,4%,10 year bonds on January 1.2022. The bonds were dated January 1 and pay interest annually on January 1. Larkspur, Inc, uses the straight-line method to amortize bond premium or discount. The bonds were sold at 104 . (a) Prepare the journal entry to record the issuance of the bonds on January 1, 2022. (Credit account titles are outomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry' for the occount titles and enter O for the amounts.) Prepare a bond premium amortization schedule for the first four interest periods. eTextbook and Media List of Accounts Attempts: 0 of 3 used (c) The parts of this puestion mast be completed in order. This part will be availstle when you complete the part above