Exercise 14-10 on January 2 201, larnersk Company SQ d 11% ords having d maturit

Question

Exercise 14-10 on January 2 201, larnersk Company SQ d 11% ords having d maturity value of $4UU,UUO for S53, 493, which prov'des the bundholders with d y% y1 d. Ihe bonds dre dated January 1 2017, and r ature January 1, 2022 with interest payable Decernber 31 of each' year Tamarisk Company allocates interest and unamortized disoount or premium on the effective interest basis for the ainounts, Credit account titles are automatically indented when Prepare the journel entry at the date uf the br issuance. (Round oswer to O decimal places, eg. 38,548. fno entry is required select "No Entry" for tre account titles and enter amount is entered. Do not indent manually.J Date Account Titles and Explanation anuary 1, 2017 Prcparc schccule cf interest expense nd bond amortization for 2017-2010. (Round answer to 0 decima, places, e.g. 38,548.) Eltectivwe-In Interest Method Paid Amortized Amount of Bonds 12/21/1 12311B 12/3119 Prepare tha jaurnal entry to racord the intarast payment and tha amartizatian tar 2017. (Round ansiver to 0 decial Maces, e.g. 38548. It n entry is raguired, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Tities and Explanation Dcbit Crodit December 31, 2017

Explanation / Answer

Jan-01 Cash 537493      Bonds payable 480000      Premium on Bonds payable 57493 Date Cash paid Interest expense Premium amortized Carrying amount 01-01-2017 537493 12/31/17 52800 42999 9801 527692 12/31/18 52800 42215 10585 517107 12/31/19 52800 41369 11431 505676 12/31/17 Interest expense 42999 Premium on Bonds payable 9801         Cash 52800 12/31/19 Interest expense 42215 Premium on Bonds payable 10585         Cash 52800

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