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On January 1, 2017, Vaughn Company sold 11 % bonds having a maturity value of $450,000 for $467,058, which provides the bondholders with a 10%

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On January 1, 2017, Vaughn Company sold 11 % bonds having a maturity value of $450,000 for $467,058, which provides the bondholders with a 10% yield . The bonds are dated January 1, 2017, and mature January 1, 2022, with interest payable December 31 of each year. Vaughn Company allocates interest and unamortized discount or premium on the effective-interest basis Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Date Debit Credit January 1, 2017 Cash 467058 Premium on Bonds Payable Bonds Payable SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare a schedule of interest expense and bond amortization for 2017-2019. (Round answer to O decimal places, e.g. 38,548.) Schedule of Interest Expense and Bond Premium Amortization Effective-Interest Method Carrying Amount of Bonds Cash Interest Expense Premium Amortized Date Paid 1/1/17 12/31/17 12/31/18 12/31/19 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the journal entry to record the interest payment and the amortization for 2017. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Prepare the journal entry to record the interest payment and the amortization for 2017. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2017 Interest Expense Premium on Bonds Payable Cash SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the joarnal entry to record the interest payment and the amortization for 2019. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titlesand enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2019 Interest Expense Premium on Bonds Payable Cash Click if you would like to Show Work for this question: Open Show Work

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