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PT A sold $100,000, 10%, 3-year bonds on January 1, 2019. The interest paid annually on January 1. The company uses straight-line method to amortize
PT A sold $100,000, 10%, 3-year bonds on January 1, 2019. The interest paid annually on January 1. The company uses straight-line method to amortize bond premium or discount. Date Interest paid Interest exp Amortization Issue date 1 2 3 Carrying Amount 108.121 ? ? 10.000 10.000 10.000 ? ? 2.707 2.707 2.707 Instructions: a. Prepare journal entry to record the issuance of bonds on January 1, 2019 (3%). b. Complete the amortization table above. Fill in the question marks. (6%) c. Prepare the journal entries for interest and the amortization of the discount/premium for the first year. (3%) d. Prepare the journal entries for interest payment on January 1, 2020 (first year). (3%)
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