Problem 10-9A Paris Electric sold $3,000,000, 10%, 10-year bonds on January 1, 2
ID: 2575197 • Letter: P
Question
Problem 10-9A Paris Electric sold $3,000,000, 10%, 10-year bonds on January 1, 2019. The bonds were dated January 1 and pay interest annually on January 1. Paris Electric uses the straight-line method to amortize bond premium or discount. The bonds were sold at 104. * Your answer is incorrect. Try again. Prepare the journal entry to record the issuance of the bonds on January 1, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2019 KUU% X2X2X 2 Your answer is partially correct. Try again. Prepare a bond premium amortization schedule for the first 4 interest periods. Premium Amortization Unamortized Premium Interest Expense Annual Interest Periods Interest to Be Paid to Be Recorded Issue date Bond Carrying Value 3120000 ..*...X a w N - X *** **** EE EExplanation / Answer
1. Jounal entries
Bond Amortization table
3. Interest entries
4. Balance Sheet Presentation
Year Particulars L.F Debit ($) Credit ($) 2019 Jan-01 Cash (3,000,000*1.04) 3,120,000 Premium on Bonds payable 120,000 Bond Payable 3,000,000 (For 10 year bonds issued at premium)