Question
Premium Amortization On the first day of the fiscal year, a company issues a $3,000,000, 12%, 5-year bond that pays semiannual interest of $180,000 ($3,000,000
Premium Amortization
On the first day of the fiscal year, a company issues a $3,000,000, 12%, 5-year bond that pays semiannual interest of $180,000 ($3,000,000 12% ), receiving cash of $3,113,064.
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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Financial Accounting
Authors: Carl S. Warren, Jim Reeve, Jonathan Duchac
14th edition
1305088433, 978-1305088436
