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On June 30, 2020, Oriole Company issued $5,840,000 face value of 13%, 20-year bonds at $6,279,340, a yield of 12% Oriole uses the effective-interest method

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On June 30, 2020, Oriole Company issued $5,840,000 face value of 13%, 20-year bonds at $6,279,340, a yield of 12% Oriole uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. (a) Your answer is correct. Prepare the journal entries to record the following transactions. (Round answer to decimal places, eg, 38,548. If no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Da not indent manually (1) The issuance of the bonds on June 30, 2020 The payment of interest and the amortization of the premium on December 31, 2020, (3) The payment of interest and the amortization of the premium on June 30, 2021 The payment of interest and the amortization of the premium on December 31, 2021 (2) (4) Date ve 30 20 Account Titles and Explanation Casti Debit Credit 6279340 Bond Payable S800000 Premium on Bond Payable cember 2020 Interest Expense 376750 Premium on Bonds Payable 2540 E amount is entered. Do not Indent manually) (1) The issuance of the bonds on June 30, 2020. (2) The payment of interest and the amortization of the premium on December 31, 2020. (3) The payment of interest and the amortization of the premium on June 30, 2021. The payment of interest and the amortization of the premium on December 31, 2021. Account Tities and Explanation Date he 30, 20 Debit Cash Credit 6279340 Bonds Payable Premium on Bonds Payable 5840000 cember 2020 Interest Expense 439340 376760 Premium on Bonds Payable 2840 Cash he 30 21 Interest Expense 379500 376590 Premium on Bonds Payable 3010 cember 2021 Interest Expense 376409 Premium on Bonds Payable 3193 Textbook and Media Attempts: 1 of 10 used Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2021, balance sheet. (Round answers to decimal places, eg. 38,548.) Oriole Company Balance Sheet December 31, 2021 Long-term Liabilities Bonds Payable 5840000 Premium on Bonds Payable I Book Value of Bonds Payable

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