The Bonds Payable and related Premium amounts on the Nov. trial balance relate to the Jan. 1, 2017 issuance of the following bonds: On Jan. 1, 2017, the company issued 10%, 10-year bonds when the market rate for similar investments was 8%. The company pays interest each year on January 1st. On Dec. 31, 2017, use the effective interest method of amortizing the premium on bonds payable to accrue the interest expense for 2017. Round your interest expense calculation to the nearest whole dollar.

In Blank [1] enter the expense account to be debited. In Blank [2] enter the amount to be debited. In Blank [3] enter the amortization to be debited. In Blank [4] enter the amount to be debited. In Blank [5] enter the account to be credited. In Blank [6] enter the amount to be credited.

Dr. [1]_______________ [2]$_____________

Dr. [3]_______________ [4]$_____________

Cr. [5]________________ [6]$____________

Denver Mountain Company Trial Balance 11/30/17 Cr Dr 272,000 114,500 1,000 50,000 55,000 62,000 75,000 0 32,000 100,000 Cash Accounts Receivable Allowance for Doubtful Accounts Short Term Note Receivable Supplies Inventory Equipment Building Accumulated Depreciation Copyright Accounts Payable Dividends Payable Interest Payable Unearned Revenue ST Note Payable LT Mortgage Payable Bonds Payable Premium on Bonds Payable Common Stock - $1.50 par Paid In Capital In Excess of Par - CS Preferred Stock - $5 par Paid In Capital In Excess of Par - PS Treasury Stock Retained Earnings Dividends Sales Revenue Sales Returns & Allowances Sales Discounts Cost of Goods Sold Bad Debts Expense Depreciation Expense Wages Expense Rent Expense Insurance Expense Supplies Expense Interest Revenue Interest Expense Gain on Sale of Equipment Income Tax Expense Total 12,000 0 0 18,000 26,250 0 350,000 26,840 90,000 86,000 1,000 50,000 0 3,500 2,000 443,910 7,000 3,000 46,000 5,000 16,000 157,500 98,000 25,000 16,000 1,000 6,500 15,000 46,000 1,156,500 1,156,500