alse baan eenar ation aheetaler repair products to eas ment manufacturers on Apr

Question

alse baan eenar ation aheetaler repair products to eas ment manufacturers on April i. 2016 0aan corporation issued $6 700,000 of 8 veac 12% bonds at a makat (effective) interest rate of 9s, recelving cash of $7,829,018. Interest is payable semiannually on April 1 and October 1. Cash Premium on Bonds Payable v Bonds Payabl is always recorded at face value. Any difference in issue price is reflected in a premium or discount account The straight-äine method of amortization provides equal amounts of amortization over the ife of the bond b. Sournalize the entry to recond the first interest pavment on October 1, 2016, and amortization of bond premium for si months wing the stralght line method combined with the semianual interest paymentRound to the nearest dollar.) For a compound transaction, # an mount box does not require an entry, leave it blank e2pM

Explanation / Answer

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DR CR Cash 7829018 Premium on Bond Payable 1129018 Bond Payable 6700000

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