Entries for issuing bonds and amortizing premium by straight-line method Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $1,700,000 of 8-year, 6% bonds at 5%, receiving cash of $1,810,967. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1, 20Y1. If an amount box does not require an entry, leave it blank. Cash Premium on Bonds Payable Bonds Payable Feedback 1,810,967 110,967 Interest Expense 1,700,000 Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond. b. Journalize the entry to record the first interest payment on October 1, 20Y1, and amortization of bond premium for 6 months, using the str nearest dollar. If an amount box does not require an entry, leave it blank.

Entries for issuing bonds and amortizing premium by straight-line method Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $1,700,000 of 8 year, 6% bonds at 5%, receiving cash of $1,810,967. Interest is payable semiannually on April 1 and October 1 . a. Journalize the entry to record the issuance of bonds on April 1, 20Y1, If an amounit box does not require an entry, leave it blank. Feedback rChock My Work Bonds Payable is always recorded at face value. Amy difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond. b. Journalize the entry to record the first interest payment on October 1,20Y1, and amortization of bond premium for 6 months, using the s nearest dollar. If an amount box does not require an entry, leave it blank