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On the first day of the fiscal year, a company issues a $1,400,000, 7%, 4-year bondthat pays semiannual interest of $49,000 ($1,400,000 7% ), receiving

On the first day of the fiscal year, a company issues a $1,400,000, 7%, 4-year bondthat pays semiannual interest of $49,000 ($1,400,000 7% ), receiving cash of $1,553,835.

Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

Interest Expense
Premium on Bonds Payable

Cash

.......................................................................................................................................................................................................................................................................................................................

On the first day of the fiscal year, a company issues a $1,500,000, 6%, 7-year bond that pays semiannual interest of $45,000 ($1,500,000 6% ), receiving cash of $1,341,552.

Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

Interest Expense
Discount on Bonds Payable

Cash

...................................................................................................................................................................................................

Times interest earned

Berry Company reported the following on the company's income statement in two recent years:

Current Year Prior Year
Interest expense $388,000 $426,800
Income before income tax expense 6,014,000 6,145,920

a. Determine the number of times interest charges were earned for current Year and prior Year. Round to one decimal place.

Current Year
Prior Year

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