LRNA Company issued $320,000, 7%, 10-year bonds on January 1, 2017, for $343,551. This price...
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LRNA Company issued $320,000, 7%, 10-year bonds on January 1, 2017, for $343,551. This price resulted in an effective-interest rate of 6% on the bonds. Interest is payable annually on January 1. LRNA uses the effective-interest method to amortize bond premium or discount.
Prepare the journal entry to record the issuance of the bonds. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Jan. 1
Prepare the journal entry to record the accrual of interest and the premium amortization on December 31, 2017. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Dec. 31
Prepare the journal entry to record the payment of interest on January 1, 2018. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Jan. 1
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