Question
Premium Amortization On the first day of the fiscal year, a company issues a $3,100,000, 8%, 5-year bond that pays semiannual interest of $124,000 ($3,100,000
Premium Amortization
On the first day of the fiscal year, a company issues a $3,100,000, 8%, 5-year bond that pays semiannual interest of $124,000 ($3,100,000 8% ), receiving cash of $3,228,908.
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.
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Accounting A Smart Approach
Authors: Mary Carey, Cathy Knowles, Jane Towers-Clark
3rd Edition
0198745133, 978-0198745136
