b.2 Assume instead that the proceeds were $15,327,000. Record the journal entry
ID: 2456030 • Letter: B
Question
b.2 Assume instead that the proceeds were $15,327,000. Record the journal entry to show the payment of semianual interest and the related premium amortization on June 30, 2013, assuming that the promium ot $327 000 is amortized on a straight-line basis. _ewia...-ceonlist uanoaction list view general journal view general journal ournal Entry Worksheet Record the semiannual cash payment and amortization oi premium General Journal Debit Credit Enter debits before credits done clear entry h the web and Wi HIBAExplanation / Answer
Answer:
The face value of bonds issue = $15,327,000 - $327,000 = $15,000,000
Assuming the rate of interest of 10% and maturiy of 10 years:
Date Account title Debit Credit June-30-2013 By Interest expenses 733650 (balancing figure) By Premium on bonds payble 16350 ($327,000/10) *6/12 To Cash 750000 ($15,000,000*10%*6/12)Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.