Sharon Lee Company issued $636,000 of 10%, 20-year bonds on January 1, 2025, at 102. Interest...

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Sharon Lee Company issued $636,000 of 10%, 20-year bonds on January 1, 2025, at 102. Interest is payable semiannually on July 1 and January 1. Sharon Lee Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705%. Click here to view factor tables. Prepare the journal entries to record the following. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) a. The issuance of the bonds. b. The payment of interest and related amortization on July 1, 2025. C. The accrual of interest and the related amortization on December 31, 2025. Date Account Titles and Explanation 1/1/25 Cash Premium on Bonds Payable Bonds Payable 7/1/25 Interest Expense Premium on Bonds Payable Cash 12/31/25 Interest Expense Premium on Bonds Payable Cash Debit Credit Sharon Lee Company issued $636,000 of 10%, 20-year bonds on January 1, 2025, at 102. Interest is payable semiannually on July 1 and January 1. Sharon Lee Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705%. Click here to view factor tables. Prepare the journal entries to record the following. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) a. The issuance of the bonds. b. The payment of interest and related amortization on July 1, 2025. C. The accrual of interest and the related amortization on December 31, 2025. Date Account Titles and Explanation 1/1/25 Cash Premium on Bonds Payable Bonds Payable 7/1/25 Interest Expense Premium on Bonds Payable Cash 12/31/25 Interest Expense Premium on Bonds Payable Cash Debit Credit

Answer rating: 100% (QA)

a The issuance of the bonds January 1 2025 Debit Cash 651720 Credit Bonds Payable 636000 Credit Premium on Bonds Payable 15720 Explanation The company ... View the full answer