Sage Hill Inc. issues $\backslash (\backslash$$ $4\mathrm{.}5\backslash )$ million, $10-$year, $\backslash (6\backslash \%\backslash )$ bonds at $101,$ with interest payable on January $1.$ The straight$-$line method is used to amortize bond premium.

$($a$)$

Your answer is correct.

Prepare the journal entry to record the sale of these bonds on January $1,2025.($List all debit entries before credit entries. Credit account titles are automatically indented when 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.$)$

Date Account Titles and Explanation

Debit

Credit

Jan. $1$

Cash

$4545000$

Bonds Payable

Premium on Bonds Payable

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List of Accounts

Your answer is partially correct.

Prepare the journal entry to record interest expense and bond premium amortization on December $31,2025,$ assuming no previous accrual of interest. $($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.$)$

Date Account Titles and Explanation

Debit

Credit

Dec. $31$ Interest Expense

Premium on Bonds Payable

Interest Payable $]$

eTextbook and Media

Assistance Used

List of Accounts