On January 1, 2022, Elish Company issued $4,000,000,10%,10 year bonds at $4,543,627. This Price resulted...
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On January 1, 2022, Elish Company issued $4,000,000,10%,10 year bonds at $4,543,627. This Price resulted in an 8% effective interest rate on the bonds. Elish uses the effective interest method to amortize bond premium or discount. The bonds pay anual interest on each January 1. Instructions: 1. Prepare the journal entries to record the following transactions. a. The issuance of the bond son January 1, 2022. b. Accrual of interest and the amortization of the premium on December 31, 2022. c. The payment of interest on January 1, 2023. d. Accrual of interest and amortization of the premium on December 31, 2023
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On January 1, 2022, Elish Company issued $4,000,000,10%,10 year bonds at $4,543,627. This Price resulted in an 8% effective interest rate on the bonds. Elish uses the effective interest method to amortize bond premium or discount. The bonds pay anual interest on each January 1. Instructions: 1. Prepare the journal entries to record the following transactions. a. The issuance of the bond son January 1, 2022. b. Accrual of interest and the amortization of the premium on December 31, 2022. c. The payment of interest on January 1, 2023. d. Accrual of interest and amortization of the premium on December 31, 2023 