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Required information P10-11 (Algo) Recording and Reporting a Bond Issued at a Premium (with Premium Account) LO10-5 (The following information applies to the questions displayed
Required information P10-11 (Algo) Recording and Reporting a Bond Issued at a Premium (with Premium Account) LO10-5 (The following information applies to the questions displayed below.] Serotta Corporation is planning to issue bonds with a face value of $400,000 and a coupon rate of 8 percent. The bonds mature in two years and pay interest quarterly every March 31, June 30, September 30, and December 31. All of the bonds were sold on January 1 of this year. Serotta uses the effective-interest amortization method and also uses a premium account. Assume an annual market rate of interest of 4 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) P10-11 Part 2 2. Provide the journal entry to record the interest payment on March 31, June 30, September 30, and December 31 of this year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar amount.) View transaction St f3 Journal entry worksheet 1 2 3 4 OK Record the interest payment on March 31. ences Note: Enter debits before credits Debit Generat Journal Date Credit March 31 Record entry Clear entry View general journal Journal entry worksheet >
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