Problem 10-8A (Part Level Submission)

Ayayai Corporation sold $2,000,000, 6%, 5-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay interest on January 1. Ayayai Corporation uses the straight-line method to amortize bond premium or discount.

a)Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2017, assuming that the bonds sold at 102.

b)Prepare journal entries to record the issuance of the bonds and bond interest expense for 2017, assuming that the bonds sold at 95.

c)unknown

Problem 10-8A (Part Level Submission) Ayayai Corporation sold $2,000,000, 6%, 5-year bonds on January 1, 2017. The bonds were dated]anuary 1, 2017, and pay interest on January 1. Ayayai Corporation uses the straight-line method to amortize bond premium or discount (a) Your answer is correct Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2017, assuming that the bonds sold at 102. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jan. 1 Cash 2040000 Bonds Payable 2000000 40000 Premium on Bonds Payable Dec. 31 Interest Expense 112000 Premium on Bonds Payable 8000 Interest Payable 120000 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 1 of 2 used Prepare journal entries to record the issuance of the bonds and bond interest expense for 2017, assuming that the bonds sold at 95. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)