Homework Answers
Semi annual interest payment = 103,000 x 8% x 6/12
= $4,120
Semi annual band premium amortization = 8,171/10
= $817
1.
| Date | General Journal | Debit | Credit |
| December 31, 2016 | Cash | 111,171 | |
| Premium on Bonds payable | 8,171 | ||
| Bonds payable | 103,000 |
2.
| Date | General Journal | Debit | Credit |
| June 30, 2017 | Interest expense | 3,249 | |
| Premium on Bonds payable | 817 | ||
| Cash | 4,120 |
3.
| Date | General Journal | Debit | Credit |
| December 31, 2017 | Interest expense | 3,249 | |
| Premium on Bonds payable | 817 | ||
| Cash | 4,120 |
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