Parut Mahajan\'s Birthday US Kieso, Intermediate Accounting, 16a INTERMEDIATE AC

Question

Parut Mahajan's Birthday US Kieso, Intermediate Accounting, 16a INTERMEDIATE ACCOUNTING I& II (310/311/312) A Practice Gradebook ORION Downloadable Textbook Brief Exercise 14-8 Monty Corporation issued $470,000 of 7% bonds on November 1, 2017, for $499,520. The bonds were dated November 1, 2017, and mature in 8 years, with interest | payable each May 1 and November 1. Monty uses the effective-interest mrthod with an effective rate of 5%. Prepare Monty's December 31, 2017, adjusting entry. (Round Intermedlate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 declmal place e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titdes are automatically Indented when amount Is entered. Do not Indent manually.) Account Tides and Explanation December 31, 2017 Click If you would like to Show Work for this question: Open Show Work LINK TO TEXT SAVE FOR LATER SUBMIT A Question Attempts: 0 of 4 used MacBook Pro 8 2 3 4

Explanation / Answer

Adjusting Journal Entry Date Account Tittle Debit Credit Dec31,2017 Interest expense ($499520 × 6% × 2/12) $4,995 Premium on bonds payable $488 Interest payable ($470,000 × 7% × 2/12) $5,483

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