On January 1, Hutton Corp. issued $250,000 of 15 year, 10% bonds payable for $293,230 yielding an effective interest rate of 8%. Interest is payable semiannauilly on June 30 and December 31.

Indicate the financial statment effects using the template for (1) bond issuance, (2) semiannual interest payment and premium amortization on June 30 of the first year, and (3) semiannual interest payment and premium amortization on December 31 of the first year.

Transaction

Cash Asset

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Noncash Asset

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Liabilities

+

Contrib. Capital

+

Earned Capital

Revenue

-

Expense

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Net Income