On July 1, 2017, Blossom Corp. issued $3,660,000 of 10-year, 5% bonds at $3,959,232. This price resulted in a 4% market interest rate on the bonds. The bonds pay semi-annual interest on July 1 and January 1, and Blossom has a December 31 year end.

Record the issue of the bonds on July 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
July 1

Prepare an effective interest amortization table for the first five interest payments for these bonds. (Round answers to 0 decimal places, e.g. 5,275.)

BLOSSOM CORP. Bond Premium Amortization Table Effective Interest MethodAnnual Interest Payments 5% Bonds Issued at market rate of 4%
Date		Interest Payment		Interest Expense		Premium Amortization		Bond Amortized Cost
July 1, 2017		$		$		$		$
Jan. 1, 2018
July 1, 2018
Jan. 1, 2019
July 1, 2019
Jan. 1, 2020

Record the accrual of interest at December 31, 2017, and the subsequent payment on January 1, 2018. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2017
Jan. 1, 2018

Assuming instead that Blossom has an August 31 year end, prepare the adjusting entry related to these bonds on August 31, 2017, as well as the subsequent interest payment on January 1, 2018. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Aug. 31, 2017
Jan. 1, 2018