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.. . Cengage CengageNOWv2 | Onl X C Chegg Study | Guided Soli Homework Help -Q8A frSamsung Galaxy S9 Plus O v2 cengageno con ilm takeAss gnment take ssignmentain doinvoker-assignments takeAssignmentsess on ocator-assignment t Ch 14-3 Exercises and Problems Show Me HowCalculator Print item eBook Entries for Issulng Bonds and Amortizing Premlum by Stralght-Line Method Daan Corporation wholesales repair products to equipment manufacturers. On April 1, 2016, Daan Corporation issued $4,600,000 of 9-year 6% bonds at a market (effective) interest rate of 5%, receiving cash of $4,930,127. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the Issuance of bonds on Aprll 1, 2016. For a compound transaction, If an amount box does not requlre an entry leave It blank. 1. EX.14-05.BLANKSHEET AL.. 2. EX.14-06.ALGO 3. EX.14-07.ALGO 4. EX. 14-08,BLANKSHEETAL… 5. EX.14-09.ALGO 6. EX.14-12.ALGO 7. EX. 14-14.ALGO b. Journallze the entry to record the first Interest payment on October 1, 2016, and amortization of bond premlum for slx months, using the

Explanation / Answer

a Cash 4930127 Bonds payable 4600000 Premium on Bonds payable 330127 b Interest expense 119660 Premium on Bonds payable 18340 =330127/18 Cash 138000 =4600000*6%/2 c The market rate of interest is lower than the contract rate of interest

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