Answer:
Interest Expense 409,113
Premium on Bonds Payable* 30,887
Cash 440,000
* $308,869 ÷ 10 semiannual payments
PE 14-5B Premium amortization
Using the bond from Practice Exercise 14-4B, journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar.
Answer:
Interest Expense 409,113
Premium on Bonds Payable* 30,887
Cash 440,000
* $308,869 ÷ 10 semiannual payments
Answer:
Interest Expense 409,113
Premium on Bonds Payable* 30,887
Cash 440,000
* $308,869 ÷ 10 semiannual payments