On January 1, N, Benedict Canyon Company issued $800,000, 10-year, 6% bonds at 103.

VII. On January 1, N, Benedict Canyon Company issued $800,000,10-year, 6% bonds at 103 . Instructions (a) Prepare the journal entry to record the sale of these bonds on January 1,N. (b) Suppose the remaining Premium on Bonds Payable was $14,400 on December 31,N+3. Show the balance sheet presentation on this date. (c) Explain why the bonds could be sold at a price above the face amount. VIII. Ohmes Company issued $500,000 of 6%,20-year bonds on January 1,N at face value. Interest is payable annually on January 1. Instructions: Prepare the journal entries to record the following events. (a) The issuance of the bonds. (b) The accrual of interest on December 31,N+3. (c) The payment of interest on January 1,N+4. (d) The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded