Question Content Area Using a Premium Amortization Table (Straight Line) For Dingle Corporation, the following amortization table was prepared when $400,000 of 5 year, 7 bonds were sold on January 1, 2024, for $443,000 Period Cash Payment (Credit) Interest Expense (Debit) Premium on Bonds Payable (Debit) Premium on Bonds Payable Balance Carrying Value At issue 43,000 443,000 06 30 24 $14,000 $9,700 $4,300 38,700 438,700 12 31 24 14,000 9,700 4,300 34,400 434,400 06 30 25 14,000 9,700 4,300 30,100 430,100 12 31 25 14,000 9,700 4,300 25,800 425,800 06 30 26 14,000 9,700 4,300 21,500 421,500 12 31 26 14,000 9,700 4,300 17,200 417,200 06 30 27 14,000 9,700 4,300 12,900 412,900 12 31 27 14,000 9,700 4,300 8,600 408,600 06 30 28 14,000 9,700 4,300 4,300 404,300 12 31 28 14,000 9,700 4,300 0 400,000 Required Question Content Area 1 Prepare the entry to recognize the issuance of the bonds on January 1, 2024 If an amount box does not require an entry, leave it blank 2024 Jan 1 Bonds PayableCashPremium on Bonds PayableInterest ExpenseInterest Payable Select Select Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest Payable Select Select Discount on Bonds PayableInterest ExpenseInterest PayableNotes PayablePremium on Bonds Payable Select Select Record issuance of bonds at premium Question Content Area 2 Prepare the entry to recognize the first interest payment on June 30, 2024 If an amount box does not require an entry, leave it blank 2024 June 30 Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest Payable Select Select Bonds PayableCashDiscount on Bonds PayableInterest PayablePremium on Bonds Payable Select Select Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds Payable Select Select Record interest expense Question Content Area 3 Determine what interest expense for this bond issue Dingle will report in its 2025 income statement $fill in the blank 6d867bf67fee058 1 Question Content Area 4 Indicate how these bonds will appear in Dingles December 31, 2027, balance sheet Bonds payable 7 Bonds, due 2028Accumulated AmortizationNet Loss on Bonds PayableUnamortized premium on Bonds Payable $ Select Add Unamortized Discount on Bonds PayableLess Unamortized Discount on Bonds PayableAdd Unamortized Premium on Bonds PayableLess Unamortized Premium on Bonds Payable Select $ Select

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Posted on Aug 12, 2024

Using a Premium Amortization Table (Straight Line)

For Dingle Corporation, the following amortization table was prepared when $400,000 of 5-year, 7% bonds were sold on January 1, 2024, for $443,000.

Period	Cash Payment (Credit)	Interest Expense (Debit)	Premium on Bonds Payable (Debit)	Premium on Bonds Payable Balance	Carrying Value
At issue				43,000	443,000
06/30/24	$14,000	$9,700	$4,300	38,700	438,700
12/31/24	14,000	9,700	4,300	34,400	434,400
06/30/25	14,000	9,700	4,300	30,100	430,100
12/31/25	14,000	9,700	4,300	25,800	425,800
06/30/26	14,000	9,700	4,300	21,500	421,500
12/31/26	14,000	9,700	4,300	17,200	417,200
06/30/27	14,000	9,700	4,300	12,900	412,900
12/31/27	14,000	9,700	4,300	8,600	408,600
06/30/28	14,000	9,700	4,300	4,300	404,300
12/31/28	14,000	9,700	4,300	0	400,000

Required:

1. Prepare the entry to recognize the issuance of the bonds on January 1, 2024. If an amount box does not require an entry, leave it blank.

2024 Jan. 1	Bonds PayableCashPremium on Bonds PayableInterest ExpenseInterest Payable	- Select -	- Select -
	Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest Payable	- Select -	- Select -
	Discount on Bonds PayableInterest ExpenseInterest PayableNotes PayablePremium on Bonds Payable	- Select -	- Select -
	Record issuance of bonds at premium

2. Prepare the entry to recognize the first interest payment on June 30, 2024. If an amount box does not require an entry, leave it blank.

2024 June 30	Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest Payable	- Select -	- Select -
	Bonds PayableCashDiscount on Bonds PayableInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Record interest expense

3. Determine what interest expense for this bond issue Dingle will report in its 2025 income statement. $fill in the blank 6d867bf67fee058_1

4. Indicate how these bonds will appear in Dingles December 31, 2027, balance sheet.

Bonds payable:
7% Bonds, due 2028Accumulated AmortizationNet Loss on Bonds PayableUnamortized premium on Bonds Payable	$- Select -
Add: Unamortized Discount on Bonds PayableLess: Unamortized Discount on Bonds PayableAdd: Unamortized Premium on Bonds PayableLess: Unamortized Premium on Bonds Payable	- Select -	$- Select -