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need help on the values of interest expense and premium on bonds payable ...

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Accounting

need help on the values of interest expense and premium on bonds payable image
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Entries for issuing bonds and amortizing premium by straight-line method Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, 5 miley issued $4,600,000 of 8 year, 1096 bonds at a market (effective) interest rate of 7%, receiving cash of $5,434,494. Interest is payable semiannually on April 1 and October 1 . a. Journalize the entry to record the issuance of bonds on Aprit 1,20Y1. If an amount box does not require an entry, leave it blank. Fentack Towa My won Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight -iine method of amortization provides equal amounts of amortization over the life of the bond. b. Joumalize the entry to record the first interest payment on October 1,20Y1, and amortization of bond premium for 6 months, using the straight-line method. Round to the nearest dollar, If an amount box does not require an entry, leave it blank. T Coes Gy Whin The straight line mothog of amorization provides equal amounta of moniration ower the ife of the bond

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