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  3. on january 1,2019, gates corporation issued $600,0

On January 1,2019, Gates Corporation issued $600,000 of 5-year bonds due December 31,2023, for $623,337.91...

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Accounting

On January 1,2019, Gates Corporation issued $600,000 of 5-year bonds due December 31,2023, for $623,337.91 minus bond issue costs of $3,000. The bonds carry a stated rate of interest of 10% payable annually on December 31 and were issued to yield 9%. The company uses the effective interest method of amortization to amortize any discounts or premiums and the straight-line method to amortize the debt issuance costs.
Required:
Prepare the journal entries to record the issuance of the bonds, all the interest payments, premium amortizations, debt issuance cost amortizations, and the repayment of the bonds. In addition, prepare a bond interest expense and premium amortization schedule for the bonds.

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