Brief Exercise 10-20 (Part Level Submission)

Whispering Winds Corp. issues $2.30 million, 5-year, 9% bonds at 104, with interest payable annually January 1. The straight-line method is used to amortize bond premium.

Brief Exercise 10-20 (Part Level Submission) Whispering Winds Corp. issues $2.30 million, 5-year, 9% bonds at 104, with interest payable annually January 1. The straight-line method is used to amortize bond premium. (a) Your answer is correct. Prepare the journal entry to record the sale of these bonds on January 1, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 2392000 Bonds Payable 2300000 Premium on Bonds Payable 92000 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT Attempts: 3 of 5 used (b) Prepare the adjusting journal entry to record interest expense and bond premium amortization on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31