Using a Premium Amortization Table (Straight Line)

For Dingle Corporation, the following amortization table was prepared when $400,000 of 5-year, 7% bonds were sold on January 1, 2024, for $427,000.

Period	Cash Payment (Credit)	Interest Expense (Debit)	Premium on Bonds Payable (Debit)	Premium on Bonds Payable Balance	Carrying Value
At issue				27,000	427,000
06/30/24	$14,000	$11,300	$2,700	24,300	424,300
12/31/24	14,000	11,300	2,700	21,600	421,600
06/30/25	14,000	11,300	2,700	18,900	418,900
12/31/25	14,000	11,300	2,700	16,200	416,200
06/30/26	14,000	11,300	2,700	13,500	413,500
12/31/26	14,000	11,300	2,700	10,800	410,800
06/30/27	14,000	11,300	2,700	8,100	408,100
12/31/27	14,000	11,300	2,700	5,400	405,400
06/30/28	14,000	11,300	2,700	2,700	402,700
12/31/28	14,000	11,300	2,700	0	400,000

Required:

Question Content Area

1. Prepare the entry to recognize the issuance of the bonds on January 1, 2024. If an amount box does not require an entry, leave it blank.

2024 Jan. 1

DR Cash 427,000

CR Bonds Payable ?

CR. Premium on Bonds Payable ?

4. Indicate how these bonds will appear in Dingles December 31, 2027, balance sheet.

Dingle Corporation Balance Sheet (partial) December 31, 2027

Bonds payable:
7% Bonds, due 2028Accumulated AmortizationNet Loss on Bonds PayableUnamortized premium on Bonds Payable7% Bonds, due 2028	$7% Bonds, due 2028
Add: Unamortized Discount on Bonds PayableLess: Unamortized Discount on Bonds PayableAdd: Unamortized Premium on Bonds PayableLess: Unamortized Premium on Bonds PayableAdd: Unamortized Premium on Bonds Payable	Add: Unamortized Premium on Bonds Payable