I'm trying to do my homework but this question is kind of tough for me. I have attached a print screen of my responses so far. I have "Journalize" everything and only struggle with the numbers. Any help is greatly appreciated.

Here is the URL for a larger print screen:

http://oi47.tinypic.com/r8fdkn.jpg

Nice graphic you should put some numbers in it.
When bonds are issued at a premium it means they got more than face value for them in this case the cash value is the face value multiplied by 102%, The premium is amortised (written off) over the life of the bonds in this case twenty years. When the time comes to repay the bonds they repay the face value, over to you

Well Thank you for your response it did help figure out the Cash (8160000) and that's all I understood. Any other tips how to calculate the rest>?

Thanks a lot again for taking the time to reply to my post, I appreciate it.

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Originally Posted by statistics40987

Well Thank you for your response it did help figure out the Cash (8160000) and that's all I understood. Any other tips how to calculate the rest>?

Thanks a lot again for taking the time to reply to my post, I appreciate it.

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You need to come to terms with the definitions and expressions used in accounting. You don't understand what I say because you don't understand accounting descriptions. Amortisation is like depreciation. In this case 20 years = 5% a year. When we write off an asset over time we say depreciation when we write off anything else over time we say amortise from the root morte or death

You calculated the cash therefore you calculated the premium 8160000-8000000 =

the interest rate is given

when answering a question highlight the important data

you need to review your graphic to determine whether you have the debits and credits right and whether you have the right components of the journal entry