EXCEL

E14-8 (Lo1) aROUPWOR situations. K (Determine Proper Amounts in Account Balances) Presented below are two independent (a) George Gershwin Co. sold S2000,000 of 10%, 10-year bonds at 104 on January 1, 2017. The bonds were dated January 1, 2017, and pay interest on July 1 and January 1. If Gershwin uses the straight-line discount, determine the amount of interest expense to be reported on July 1,2017, and December 31, 2017 to amortize bond premium or (b) Ron Kenoly Inc. issued $600,000 of 9%, 10-year bonds on June 30, 2017, for $562,500. This price provided a yield of 10% on the bonds. Interest is payable semiannually on December 31 and June 30. If Kenoly uses the effective- interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2017