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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
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 $440,000. Cash Payment (Credit) ( Interest Expense (Debit) ) Premium on Bonds Payable (Debit) Premium on Bonds Payable Balance Carrying Value Period At issue 440,000 06/30/24 $14,000 $10,000 $4,000 40,000 36,000 32.000 436,000 14,000 432,000 12/31/24 06/30/25 4,000 4,000 14,000 28,000 428,000 10,000 10,000 10,000 10,000 14,000 4,000 24,000 12/31/25 06/30/26 424,000 420,000 14,000 4,000 20,000 12/31/26 10,000 4,000 16,000 416,000 14,000 14,000 10,000 4,000 12,000 412,000 06/30/27 12/31/27 14,000 10,000 4,000 8,000 06/30/28 4,000 4,000 14,000 14,000 10,000 10,000 408,000 404,000 400,000 12/31/28 4,000 0 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 un 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 Record interest expense 3. Determine what interest expense for this bond issue Dingle will report in its 2025 income statement. 4. Indicate how these bonds will appear in Dingle's December 31, 2027, balance sheet. Dingle Corporation Balance Sheet (partial) December 31, 2027 Bonds payable: $
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