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On January 1,2015, Solis Co. issued its 10% bonds in the face amount of $3,000,000,...

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Accounting

On January 1,2015, Solis Co. issued its 10% bonds in the face amount of $3,000,000, which mature on January 1,2020. The bonds were issued for $3,405,000 with a rate of 8% and market rate of 5.5%, resulting in bond premium of $405,000. Solis uses the effective-interest method of amortizing bond premium. Interest is payable quarterly. Record the appropriate journal entries if you knew that they made all the interest payments for 2015 and prepare the amortization schedule. [Hint: watch out for the payment dates].

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