Answer
Interest Expense 102,496
Premium on Bonds Payable* 17,504
Cash 120,000
* $175,041 ÷ 10 semiannual payments
PE 14-5A Premium amortization
Using the bond from Practice Exercise 14-4A, journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar.
Answer
Interest Expense 102,496
Premium on Bonds Payable* 17,504
Cash 120,000
* $175,041 ÷ 10 semiannual payments
Answer
Interest Expense 102,496
Premium on Bonds Payable* 17,504
Cash 120,000
* $175,041 ÷ 10 semiannual payments