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Whispering Winds Corp. sold $2,900,000, 6%, 10-year bonds on January 1, 2022. The bonds were dated January 1 and pay interest annually on January 1.

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Whispering Winds Corp. sold $2,900,000, 6%, 10-year bonds on January 1, 2022. The bonds were dated January 1 and pay interest annually on January 1. Whispering Winds Corp. uses the straight-line method to amortize bond premium or discount. The bonds were sold at 102. (a) Your answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1, 2022 Cash 2958000 Premium on Bonds Payable 58000 Bonds Payable 2900000 (b) Your answer is correct. Prepare a bond premium amortization schedule for the first four interest periods. Interest Expense to Be Recorded Interest to Be Paid Premium Amortization Unamortized Premium $ 58000 174000 $ 168200 5800 52200 174000 168200 5800 46400 174000 168200 5800 40600 174000 168200 5800 34800 (b) Your answer is correct. Prepare a bond premium amortization schedule for the first four interest periods. Interest Expense to Be Recorded Premium Amortization Unamortized Premium Bond Carrying Value $ 58000 $ 2958000 $ 168200 $ 5800 52200 2952200 168200 5800 46400 2946400 168200 5800 40600 2940600 168200 5800 34800 2934800 (c) Prepare the journal entries for interest and the amortization of the premium in 2022 and 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2022 Jan 1, 2023 Dec. 31, 2023

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