Question: On January 1 , 2 0 2 4 , Teal Mountain Corporation issued $ 1 , 7 8 0 , 0 0 0 face value,

On January

1, 2024,

Teal Mountain Corporation issued $

1, 780, 000

face value,

4 %, 10 -

year bonds at $

1, 642, 553 .

This price resulted

in an effective

-

interest rate of

5 %

on the bonds. Teal Mountain uses the effective

-

interest method to amortize bond premium or

discount. The bonds pay annual interest January

1 .

Prepare the journal entry to record the issuance of the bonds on January

1, 2024 . (

List debit entry before credit entry. Credit

account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select

"

No Entry"

for the account titles and enter

0

for the amounts. Round answers to

0

decimal places, e

.

. 5, 276 .)

Prepare the journal entry to record the accrual of interest and the amortization of the discount on December

31, 2024 . (

List all

debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.

If no entry is required, select

"

No Entry" for the account titles and enter

0

for the amounts. Round answers to

0

decimal places, e

.

. 5, 276 .)

Date

Account Titles

Debit

Credit

Dec.

31,

2024

Prepare the journal entry to record the payment of interest on January

1, 2025 . (

List debit entry before credit entry. Credit account

titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select

"

No Entry" for the

account titles and enter

0

for the amounts. Round answers to

0

decimal places, e

.

. 5, 276 .)

Debit

Credit Prepare the journal entry to record the accrual of interest and the amortization of the discount on December

31, 2025 . (

List all

debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.

If no entry is required, select

"

No Entry" for the account titles and enter

0

for the amounts. Round answers to

0

decimal places, e

.

. 5, 276 .)

On January

1, 2024,

Teal Mountain Corporation issued $

1, 780, 000

face value,

4 %, 10 -

year bonds at $

1, 642, 553 .

This price resulted in an effective

-

interest rate of

5 %

on the bonds. Teal Mountain uses the effective

-

interest method to amortize bond premium or discount. The bonds pay annual interest January

1 .

On January 1,2024, Teal Mountain Corporation issued $1,780,000 face value, 4%,10-year

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