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  3. sheridan company issued $836,000,7%,10-year bonds

Sheridan Company issued $836,000,7%,10-year bonds on January 1,2025 , for $897,530. This price resulted in...

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Accounting

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Sheridan Company issued $836,000,7%,10-year bonds on January 1,2025 , for $897,530. This price resulted in an effective-interest rate of 6% on the bonds. Interest is payable annually on January 1 . Sheridan uses the effective-interest method to amortize bond premium or discount. (a) Your answer is correct. Prepare the journal entry to record the issuance of the bonds. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount titles and enter 0 for the amounts. Round answers to 0 decimal places, es. 5,275.) Prepare the journal entry to record the accrual of interest and the premium amortization on December 31, 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, eg. 5,275.)

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