remium Amortization in the first day of the fiscal year, a company issues a $1,800,000, 9%, -year bond that pays semiannual interest of $81,000 ($1,800,000 x 2 x 2), receiving cash of $1,923,731. ournalize the first interest payment and the amortization of the related ond premium. Round to the nearest dollar. If an amount box does not equire an entry, leave it blank. Interest Expense V Premium on Bonds Payable Cash 96,466 X 15,466 ✔ ✓ 81,000

remium Amortization in the first day of the fiscal year, a company issues a $1,800,000, 9%, -year bond that pays semiannual interest of $81,000 ($1,800,000 x 2 x 2), receiving cash of $1,923,731. ournalize the first interest payment and the amortization of the related ond premium. Round to the nearest dollar. If an amount box does not equire an entry, leave it blank. Interest Expense V Premium on Bonds Payable Cash 96,466 X 15,466 ✔ ✓ 81,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 5E: Investment Discount Amortization Schedule On January 1, 2019, Rodgers Company purchased 200,000 face...

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Investment Discount Amortization Schedule On January 1, 2019, Rodgers Company purchased 200,000 face value, 10%, 3-year bonds for 190,165.35, a price that yields a 12% effective annual interest rate. The bonds pay interest semiannually on June 30 and December 31. Required: 1. Record the purchase of the bonds. 2. Prepare an investment interest income and discount amortization schedule using the effective interest method. 3. Record the receipts of interest on June 30, 2019, and June 30, 2021.
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