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is this right? Southwest Corporation issued bonds with the following details Face value:...

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Accounting

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Southwest Corporation issued bonds with the following details Face value: $610,000 Interest: 10 percent per year payable each December 31 Terms: Bonds dated January 1, 2015, due five years from that date The annual accounting period ends December 31. The bonds were issued at 103 on January 1, 2015 when the market interest rate was 9 percent. Assume the company uses straight-line amortization and adjusts for any rounding errors when recording interest expense in the final year Required: Compute the cash received from the bond issuance in dollar. TIP: The issue price typically is quoted at a percentage of face value Bond Price S 628,300 2. & 3. Prepare the journal entry to record the issuance of the bonds and the payment of interest on December 31, 2015 and 2016. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet Date anuarV 2015 0 General Journal Debit Credit Cash 628,300 Bonds Payable 610,000 18,300 Pre mium on Bonds Payable December 31, Interest Expense 57,340 2015 3,660 mium on Bonds Payable Cash Pre 61,000 December 31, Interest Expense 57,340 2016 3,660 mium on Bonds Payable Cash Pre 61,000

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