Question $1$ of $8$

$\frac{2\mathrm{.}08}{6\mathrm{.}25}$

On June $30,2025.$ Edward Lewis Company issued $$3,420,000\mathrm{.}00$ face value of $16\%,20-$year bonds at $$4,449,160\mathrm{.}00,$ a yield of $12\%.$ Lewis uses the effective$-$interest method to amortize bond premium or discount. The bonds pay semiannual interest on June $30$ and December $31.$

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$($a$)$

Your answer is correct.

Prepare the journal entries to record the following transactions. $($Round answer to $2$ decimal places, eg$.38,548\mathrm{.}25.$ If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. Credit account titles are outomatically indented when the amount is entered. Do not indent manually. List all debit entries before creditentries.$)$

The issuance of the bonds on June $30,2025.$

The payment of interest and the amortization of the premium on December $31,2025.$

The payment of interest and the amortization of the premium on June $30,2026.$

The payment of interest and the amortization of the premium on December $31,2026.$

Account Titles and Explanation

Cash $$

Bonds Payable

Premlum on Bonds Paisble

Debit

Credit

Question $1$ of $8$

$\frac{2\mathrm{.}08}{6\mathrm{.}25}$

Interest Expense

Premlum on Bonds Payable

Cash

Interest Expense

Premlum on Bonds Payable

Cash

$026,V$

$273600$

eTextbook and Media

List of Accounts

Attempts: $1$ of $2$ used

$($b$)$

$($b$)$

Show the proper balance shect presentation for the liability for bonds payable on the December $31,2026,$ balance sheet. $($Round answers to $2$ decimal places, eg$,38,548\mathrm{.}25)$

tewls Company

Balance Sheet

December $31,2026$

Bonds Pryable

$

Premilum on Bonds Prevable $$

$

$4427987\mathrm{.}79$

eTextbook and Media

List of Accounts

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$($c$)$

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