View PoliciesShow Attempt HistoryCurrent Attempt in ProgressConcord Corporation sold $2.300,000, 5%, 10-year bonds on January 1, 2022. The bonds were dated January 1 and pay interestannually on January 1. Concord Corporation uses the straight-line method to amortize bond premium or discount. The bonds weresold at 102.(a) Prepare the journal entries for interest and the amortization of the premium in 2022 and 2023. (Credit account titles areautomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles andenter O for the amounts.)Account Titles and ExplanationDebitCredit2022Interest Expense110400Premium on Bonds Payable46001150000222023

Total premium on bonds = Issue value - face value = $2300000*102/100-2300000 = $46000

Concord Corporation sold $2.300,000, 5%, 10-year bonds on January 1, 2022, The bonds were dated January 1 and pay interest annually on January 1. ConcordCorporation uses the straight-line method to amortize bond premium or discount. The bonds were sold at 102.

Concord Corporation sold $2.300,000, 5%, 10-year bonds on January 1, 2022, The bonds were dated January 1 and pay interest annually on January 1. ConcordCorporation uses the straight-line method to amortize bond premium or discount. The bonds were sold at 102.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 76E

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