Using the bond from Practice Exercise 14-4B, journalize the first interest payment and the amortization

Using the bond from Practice Exercise 14-4B, journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar.


Answer:

Interest Expense 409,113
Premium on Bonds Payable* 30,887
Cash 440,000
* $308,869 ÷ 10 semiannual payments

Using the bond from Practice Exercise 14-2A, journalize the first interest payment and the amortization of

Using the bond from Practice Exercise 14-2A, journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar.


Answer:

Interest Expense 87,913
Discount on Bonds Payable* 7,913
Cash 80,000
* $79,127 ÷ 10 semiannual payments