Yale Corporation issued $60,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1. Yale amortizes any bond discount or premium using the effective interest amortization method and bond issuance costs are $1,500. If the bonds were sold to yield 9%, provide journal entries to be made at each of the following dates. a. January 1, for issuance of bonds. b. June 30, for the first interest payment. • Note: Round your answers to the nearest whole dollar. Date a. Jan. 1 Account Name Cash Premium on Bonds Payable Bonds Payable To record bond issuance. b. June 30 Interest Expense Cash Premium on Bonds Payable To record interest payment. # # + # ♦ Dr. 54,598 5,402 0 2,457 0 0 Cr. 0✔ 0x 60,000✔ 0x 2,400✔ 57 x

Yale Corporation issued $60,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1. Yale amortizes any bond discount or premium using the effective interest amortization method and bond issuance costs are $1,500. If the bonds were sold to yield 9%, provide journal entries to be made at each of the following dates. a. January 1, for issuance of bonds. b. June 30, for the first interest payment. • Note: Round your answers to the nearest whole dollar. Date a. Jan. 1 Account Name Cash Premium on Bonds Payable Bonds Payable To record bond issuance. b. June 30 Interest Expense Cash Premium on Bonds Payable To record interest payment. # # + # ♦ Dr. 54,598 5,402 0 2,457 0 0 Cr. 0✔ 0x 60,000✔ 0x 2,400✔ 57 x

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 15MCQ

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