Exercise 14-9.docx - Exercise 14-9(Part Level Submission On Monty Company issued $4,500,000 face value of 13 20-year bonds at $4,838,533 a yield of 12

Exercise 14-9.docx - Exercise 14-9(Part Level Submission On...

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Exercise 14-9 (Part Level Submission) On June 30, 2017, Monty Company issued $4,500,000 face value of 13%, 20-year bonds at $4,838,533, a yield of 12%. Monty uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. *(a) Your answer is correct. Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) The issuance of the bonds on June 30, 2017. (2) The payment of interest and the amortization of the premium on December 31, 2017. (3) The payment of interest and the amortization of the premium on June 30, 2018. (4) The payment of interest and the amortization of the premium on December 31, 2018. No . Date Account Titles and Explanation Debit Credit (1) June 30, 2017 Cash 483853 3 Premium on Bonds Payable 338533 Bonds Payable 450000 0 (2) December 31, 2017 Interest Expense 290312
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