manfr un Problem 15-6A (Part Level Submission) Paris Electric sold 3,350 000, 12

Question

manfr un Problem 15-6A (Part Level Submission) Paris Electric sold 3,350 000, 12%, 10-year bonds or January 1, 2017. The bonds were dated January l and pay interest annually on lauryi Paris Electric uses the straight-ine method to amortine bond premium or discount. The bonds were sold at 103. (a) your answer is correct. Prepare the Journal entry to record the issuance of the bonds on January 1, 2017. (Credit account titles are automatically indented when amount is entered Do not inderst manually.) Date Account Tales and Explanation Debit Jan 1, 2017 Tcash Click l you would like to show work for this question: Open Show work Attempts: 1 of 5 used

Explanation / Answer

Annual interest interest premium unamortized Bond interest to be expense amortiztion premium Carrying periods paid value Issue date 100,500 3450500 1 402000 391950 10050 90,450 3440450 2 402000 391950 10050 80,400 3430400 3 402000 391950 10050 70,350 3420350 4 402000 391950 10050 60,300 3410300 premium amortization = 100,500/10 10050 interest paid = 3,350,000*12% 402000 interest expense = 402,000-10,050 391950

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