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On January 1, 2017. Pina Company issued $1.910.000 face value. 7%, 10-year bonds at $2.050.578. This price resulted in a 6% effective interest rate on
On January 1, 2017. Pina Company issued $1.910.000 face value. 7%, 10-year bonds at $2.050.578. This price resulted in a 6% effective interest rate on the bonds. Pina uses the effective-interest method to amortize bond premium or discount. The bonds annual interest on each January 1 Prepare the journal entries to record the following transactions. (Round answers to decimal places, eg. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) 1. 2 The issuance of the bonds on January 1, 2017 Accrual of interest and amortization of the premium on December 31, 2017 The payment of interest on January 1, 2018, 3 4. Accrual of interest and amortization of the premium on December 31, 2018 AU No. Date Account Titles and Explanation Debit Credit 1 Jan 1 2017 Ques Acco Ques Accou Ques Accou 2 Dec 31 2017 Quel Accou Que Accou 3 Jan 1 2018 View Acco Dec 31 Que Accou 4 2018 Que 3 Jan, 1 2018 4. Dec 31 2018 V
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