Please find answers and also explain. at the bottom, i have the list of the acco

Question

Please find answers and also explain. at the bottom, i have the list of the accounts that can used for this. please, only use the account names that are on the list. thanks!!!

Saberhagen Company sold $2,882,000, 6%, 10-year bonds on July 1, 2015. The bonds were dated July 1, 2015, and pay interest July 1 and January 1. Saberhagen Company uses the straight-line method to amortize bond premium or discount. Assume no interest is accrued on June 30 Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2015, assuming that the bonds are sold at 104. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) DateAccount Titles and Explanation July 1, 2015 Debit Credit Dec. 31, 2015 Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2015, assuming that the bonds are sold at 97. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) DateAccount Titles and Explanation Debit Credit July 1, 2015 Dec. 31, 2015

Explanation / Answer

Journal Entries

Date Particulars Debit Credit Issue Price: 104 July 1 Bank 2882000         Bonds Payable[2882000/104*100] 2771154         Premium on bonds payable[2882000-2771154] 110846 Dec 31 Interest expense[2882000*6%/2] 86460          Bank 86460 Issue Price: 97 July 1 Bank 2882000 Discount on bonds payable[2971134-2882000] 89134           Bonds payable[2882000/97*100] 2971134 Dec 31 Interest expense 86460           Bank 86460

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