QUESTION #3 Instructions: (A) Prepare the journal entries to record the following transactions. 1.)The issuance of the bonds on January 1, 2017. 2.)Accrual of interest and amortization of the premium on December 31, 2017. 3)The payment of interest on January 1, 2018. 4.)Accrual of interest and amortization of the premium on December 31, 2018. (B). Show the proper non-current liabilities statement of financial position presentation for the bond liability at December 31, 2018. (C) Provide the answers to the following questions in short answer form. 1.)What amount of interest expense is reported for 2018? 2.)Would the bond interest expense reported in 2018 be the same as, greater than, or less than the amount that would be reported if the straight-line method of amortization were used?
COMPANY INFO: On January 1, 2017, Jade SA issued 2,000,000 face value, 7%, 10-year bonds at 2,147,202. This price resulted in a 6% effective-interest rate on the bonds. Jade uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1.
GENERAL JOURNAL
(a)(1) 2017
Jan	Account Title	Debit	Credit
1
(a)(2) 2017
Dec	Account Title	Debit	Credit
31
(a)(3) 2018
Jan	Account Title	Debit	Credit
1
(a)(4) 2018
Dec	Account Title	Debit	Credit
31
(b)
Show your computations: JADE SA Partial Statement of Financial Position December 31, 2018 Non-current Liabilities Bonds payable ...
(c)(1)
Show your computations: Total bond interest expense for 2018 =
(c)(2)
Show your computations: