SP10 - Student Name Instructor Class McGraw-Hill/Irwin...

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Student Name: Instructor Class: McGraw-Hill/Irwin Problem 10-08A IKE General Journal Part 1. Date Account Titles Debit Credit 2013 Jan 1 Cash 184,566 Premium on Bonds Payable 4,566 «- Correct! Bonds Payable 180,000 Sold bonds on stated issue date. Part 2. Six payments of $9,900 $59,400 Par value at maturity 180,000 Total repaid $239,400 Less amount borrowed (184,566) Total bond interest expense $54,834 «- Correct! or: Six payments of $9,900 $59,400 Less premium (4,566) Total bond interest expense $54,834 «- Correct! Part 3. LEGACY Semiannual Cash Bond Interest Interest Interest Premium Unamortized Carrying Period-End Paid Expense Amortization Premium Value 1/1/2013 $4,566 $184,566 «- Correct! 6/30/2013 $9,900 $9,228 $672 3,894 183,894 «- Correct! 12/31/2013 $9,900 9,195 $705 3,189 183,189 «- Correct! 6/30/2014 $9,900 9,159 $741 2,448 182,448 «- Correct! 12/31/2014 $9,900 9,122 $778 1,671 181,671 «- Correct! IKE General Journal Part 4 Date Account Titles Debit Credit 2013 June 30 Bond Interest Expense 9,228 Premium on Bonds Payable 672 Cash 9,900 «- Correct! To record six months' interest and premium amortization. 2013 Dec. 31 Bond Interest Expense 9,195 Premium on Bonds Payable 705 Cash 9,900 «- Correct!
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