M10-9 (Algo) Recording the Issuance and Interest Payments of a Bond Issued at a Premium (with Premium Account) LO10-5

Wapato Company sold bonds with a face value of $870,000 for $955,561. The bonds have a coupon rate of 8 percent, mature in 6 years, and pay interest annually every December 31.

All of the bonds were sold on January 1 of this year. Using a premium account, record the sale of the bonds on January 1 and the payment of interest on December 31 of this year. Wapato uses the effective-interest amortization method. Assume an annual market rate of interest of 6 percent.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar amounts.

M10-9 (Algo) Recording the Issuance and Interest Payments of a Bond Issued at a Premium (with Premium Account) LO10-5 Wapato Company sold bonds with a face value of $870,000 for $955,561. The bonds have a coupon rate of 8 percent, mature in 6 years, and pay interest annually every December 31 . All of the bonds were sold on January 1 of this year. Using a premium account, record the sale of the bonds on January 1 and the payment of interest on December 31 of this year. Wapato uses the effective-interest amortization method. Assume an annual market rate of interest of 6 percent Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar amounts. Journal entry worksheet Record the sale of the bonds on January. 1. Notei Enter debas betorio eredes. Journal entry worksheet Record the payment of interest on December 31 using the effective-interest amortization method. Note: Enter debits before credts