Journalize the following entries. Round all amounts to the nearest dollar. 2008 Sept 2 Dec. 31...

 

Transcribed Image Text:

Journalize the following entries. Round all amounts to the nearest dollar. 2008 Sept 2 Dec. 31 2009 Mar 1 Sept 1 Dec. 31 2010 Feb. 2 Issued $5,000,000 of 10-year, 15% callable bonds at an effective interest rate of 14% receiving cash of $5,529,704. Interest is payable semiannually on September 1 and March 1. Accrued 4 months of interest on the bonds. Amortized the bond premium for 4 months. Closed the interest expense account. Paid the semiannual interest on the bonds. Paid the semiannual interest on the bonds. Accrued 4 months of interest on the bonds. Amortized the bond premium for the year. Closed the interest expense account Redeemed the bonds at 108. The balance in the Premium on Bonds account after amortizing to the date of sale is $454,663. Journalize the following entries. Round all amounts to the nearest dollar. 2008 Sept 2 Dec. 31 2009 Mar 1 Sept 1 Dec. 31 2010 Feb. 2 Issued $5,000,000 of 10-year, 15% callable bonds at an effective interest rate of 14% receiving cash of $5,529,704. Interest is payable semiannually on September 1 and March 1. Accrued 4 months of interest on the bonds. Amortized the bond premium for 4 months. Closed the interest expense account. Paid the semiannual interest on the bonds. Paid the semiannual interest on the bonds. Accrued 4 months of interest on the bonds. Amortized the bond premium for the year. Closed the interest expense account Redeemed the bonds at 108. The balance in the Premium on Bonds account after amortizing to the date of sale is $454,663.

Answer rating: 100% (QA)

2008 92 Cash Premium on Bonds Payable Bonds P... View the full answer