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On January 1, 2017, Bramble Company issued $ 1,820,000 face value, 7%, 10-year bonds at $ 1,953,954. This price resulted in a 6% effective-interest rate on the bonds. Bramble uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1.

Prepare the journal entries to record the following transactions. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

1.		The issuance of the bonds on January 1, 2017.
2.		Accrual of interest and amortization of the premium on December 31, 2017.
3.		The payment of interest on January 1, 2018.
4.		Accrual of interest and amortization of the premium on December 31, 2018.

No.	Date	Account Titles and Explanation	Debit	Credit
1.	Jan. 1, 2017	enter an account title to record the issuance of the bonds on January 1, 2017	enter a debit amount	enter a credit amount
		enter an account title to record the issuance of the bonds on January 1, 2017	enter a debit amount	enter a credit amount
		enter an account title to record the issuance of the bonds on January 1 , 2017	enter a debit amount	enter a credit amount
2.	Dec. 31, 2017	enter an account title to record accrual of interest and amortization of the premium on December 31, 2017	enter a debit amount	enter a credit amount
		enter an account title to record accrual of interest and amortization of the premium on december 31, 2017	enter a debit amount	enter a credit amount
		enter an account title to record accrual of interest and amortization of the premium on december 31, 2017	enter a debit amount	enter a credit amount
3.	Jan. 1, 2018	enter an account title to record the payment of interest on January 1 ,2018	enter a debit amount	enter a credit amount
		enter an account title to record the payment of interest on January 1 , 2018	enter a debit amount	enter a credit amount
4.	Dec. 31, 2018	enter an account title to record accrual of interest and amortization of the premium on December 31,2018	enter a debit amount	enter a credit amount
		enter an account title to record accrual of interest and amortization of the premium on December 31, 2018	enter a debit amount	enter a credit amount
		enter an account title to record accrual of interest and amortization of the premium on December 31, 2018	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Show the proper long-term liabilities balance sheet presentation for the liability for bonds payable at December 31, 2018. (Round answers to 0 decimal places, e.g. 125.)

BRAMBLE COMPANY Balance Sheet (Partial) choose the accounting periodchoose the accounting period For the Month Ended December 31, 2018December 31, 2018For the Year Ended December 31, 2018
select an opening subsection nameselect an opening subsection name Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
enter a balance sheet item		$ enter a dollar amount
select between addition and deductionselect between addition and deduction AddLess: enter a balance sheet item		enter a dollar amount		$ enter a total of the two previous amounts

eTextbook and Media

List of Accounts

Provide the answers to the following questions. 1. What amount of interest expense is reported for 2018? (Round answer to 0 decimal places, e.g. 125.)

Interest expense to be reported

$ enter Interest expense in dollars

2. The bond interest expense reported in 2018 would be select an optionselect an option greater thanless thansame as the amount that would be reported if the straight-line method of amortization were used.

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