Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $7,000,000 of...

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Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $7,000,000 of 7-year, 6% bonds at a market (effective) interest rate of 5%, receiving cash of $7,409,182. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1, 20Y1. If an amount box does not require an entry, leave it blank. Cash 7,4I2V Premium on Bonds Payable 40,IN2V Bonds Payable 7,000,000 Feedback Check My Wor Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premlum or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond. b. Journalize the entry to record the first interest payment on October 1, 20Y1, and amortization of bond premium for six months, using the straight-ine method. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense 180,772.71 X Premium on Bonds Payable 29,227.29 X Cash 210.000 Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $7,000,000 of 7-year, 6% bonds at a market (effective) interest rate of 5%, receiving cash of $7,409,182. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1, 20Y1. If an amount box does not require an entry, leave it blank. Cash 7,4I2V Premium on Bonds Payable 40,IN2V Bonds Payable 7,000,000 Feedback Check My Wor Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premlum or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond. b. Journalize the entry to record the first interest payment on October 1, 20Y1, and amortization of bond premium for six months, using the straight-ine method. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense 180,772.71 X Premium on Bonds Payable 29,227.29 X Cash 210.000

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Requirement A Journalizing the entry to record the ... View the full answer