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On January 1,2020, Ivanhoe Enterprises issued 9%,10-year bonds with a face amount of $940,000 at...

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Accounting

On January 1,2020, Ivanhoe Enterprises issued 9%,10-year bonds with a face amount of $940,000 at 96. Interest is payable annually on January 1. The bonds were issued for an effective interest rate of 10%.
Prepare the entries to record the issuance of the bonds and the first annual interest accrual and amortization assuming that the company uses effective-interest amortization. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)
Date Account Titles and Explanation
Debit
Credit
Cash
Bonds Payable
Premium on Bonds Payable
Dec. 31vv, Interest Expense
Interest Expense
Premium on Bonds Payable
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