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Question 5 Flounder Electric sold 3,546,000, 10%, 10-year bonds on January 1, 2017. The bonds...

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Question 5 Flounder Electric sold 3,546,000, 10%, 10-year bonds on January 1, 2017. The bonds were dated January 1 and pay interest annually on January 1. Flounder Bectric uses the straight-line method to amortize bond premium or discount. The bonds were sold at 103. Assume the country allows the use of straight line amortization for bond premiums and discounts. (a) Your answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan 1, 2017 36523801 Cash Bonds Payable 3652380 Prepare a bond premium amortization schedule for the first 4 Interest periods. Annual Interest Expense Interest Periods Interest to Be Paid to Be Recorded Issue date Premium Amortization Bond Carrying Value 3652380 1 354600 351054 3546 3648834 2. 354600 351054 3546 3645288 3 354600 351054 3546 3641742 354600 351054 3546 3638196 By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor

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