Homework Answers
Solution:
| Journal Entries - Ramos Travel Co. | |||
| Date | Particulars | Debit | Credit |
| 1-Apr | Cash Dr | $624,000.00 | |
| To Bond Payable | $600,000.00 | ||
| To Premium on Bond Payable | $24,000.00 | ||
| (To record issue of bond at premium) | |||
| 30-Sep | Interest Expense Dr | $26,400.00 | |
| Premium on bond payable Dr | $600.00 | ||
| To Cash | $27,000.00 | ||
| (To record interest payment and premium amortization) | |||
| 31-Dec | Interest Expense Dr | $13,200.00 | |
| Premium on bond payable Dr | $300.00 | ||
| To Interest Payable | $13,500.00 | ||
| (To record interest accrued and premium amortization) | |||
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