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P$10-11($Algo$)$ Recording and Reporting a Bond Issued at a Premium $($with Premium Account$)$ LO$10-5$

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$[$The following information applies to the questions displayed below.$]$

Serotta Corporation is planning to issue bonds with a face value of $$410,000$ and a coupon rate of $12$ percent. The bonds mature in two years and pay interest quarterly every March $31,$ June $30,$ September $30,$ and December $31.$ All of the bonds were sold on January $1$ of this year. Serotta uses the effective$-$interest amortization method and also uses a premium account. Assume an annual market rate of interest of $8$ percent. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ and PVA of $$1)$

Note: Use appropriate factor$($s$)$ from the tables provided.

P$10-11$ Part $1$

$1.$ Provide the journal entry to record the issuance of the bonds January $1.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round your final answers to nearest whole dollar amount.!

Required information

P$10-11($Algo$)$ Recording and Reporting a Bond Issued at a Premium $($with Premium Account$)$ L$010-5$

$[$The following information applies to the questions displayed below.$]$

Serotta Corporation is planning to issue bonds with a face value of $$410,000$ and a coupon rate of $12$ percent. The bonds

mature in two years and pay interest quarterly every March $31,$ June $30,$ September $30,$ and December $31.$ All of the bonds

were sold on January $1$ of this year. Serotta uses the effective$-$interest amortization method and also uses a premium

account. Assume an annual market rate of interest of $8$ percent. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ and $PV{A}_{?}$ of $$1)$

Note: Use appropriate factor$($s$)$ from the tables provided.

P$10-11$ Part $2$

Provide the journal entry to record the interest payment on March $31,$ June $30,$ September $30,$ and December $31$ of this year.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round your final

answers to nearest whole dollar amount.

Journal entry worksheet

Record the interest payment on March $31.$

Note: Enter debits before credits.