Question 1 2017. The bonds were date anuary 1 017 and pay interest on an an Flin

Question

Question 1 2017. The bonds were date anuary 1 017 and pay interest on an an Flint Corporation use s the straight-line Flint Corporation sold $3,130,000 8%, 5-year bonds on January 1 method to amortize bond premium or discount. Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2017, assuming that the bonds sold at 105. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Dec. 31

Explanation / Answer

1-Jan Cash 3286500 =3130000*1.05       Bonds payable 3130000       Premium on Bonds payable 156500 31-Dec Interest expense 219100 Premium on Bonds payable 31300 =156500/5       Interest payable 250400 =3130000*8%

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