Examlex

Solved

On January 1,2018,a Company Issues 3-Year Bonds with a Face

question 177

Essay

On January 1,2018,a company issues 3-year bonds with a face value of $560,000 and a stated interest rate of 8%.Because the market interest rate is lower than the stated interest rate,the company receives $585,200 for the bond.The company uses straight-line bond amortization.
Required:
Part a.Determine the amount of the premium that will be amortized during the year ending December 31,2018.
Part b.Prepare the journal entry to record the first interest payment on December 31,2018.


Definitions:

Convulsions

Involuntary muscle contractions that are rapid and often accompanied by changes in behavior or consciousness, typically as a result of a medical condition like epilepsy.

Tarantism

A historical psychological illness characterized by an uncontrollable urge to dance, often linked to spider bites or supposed possession.

Johann Weyer

A Dutch physician and occultist of the 16th century, known for his pioneering work on the medical treatment of the mentally ill.

Physician

A medical professional who diagnoses and treats illnesses, manages patient care, and may prescribe medications.

Related Questions