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Accounting Amortization Method Question
On March 1, 2009, five-year bonds are sold for $508,026 that have a face value of $500,000 n an interest rate of 10%. Interest is paid semi-annually on March 1 and September 1. Using the straight-line amortization method, prepare the borrower's journal entries on
- March 1, 2009 - September 1, 2009 - December 31, 2009 - March 1, 2010 ------------------------------------- Here's what I've worked through so far.March 1st 2009 debit cash of 508,026 credit premium on bonds payable of 8,026 credit bonds paable of 500,000 Sep 1st 2009 debit bond interest expense of 24,197.40 debit premium on bonds payable 802.60 credit cash of 25,000 Dec 31 2009 debit bond interest expense of 16,131.60 debit premium on bonds payable of 535.07 credit bonds interest payable of 16,666.67 March 1st 2010 debit bond interest expense of 8,065.80 debit bond interest payable of 16,666.67 debit premium on bonds payable of 267.53 credit cash for 25,000 |
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