Problem 15-07A a-d The following is taken from the Sunland Company balance sheet. Sunland Company Balance Sheet (partial) December 31, 2020 Current Liabilities Interest payable (for 12 months from January 1 to December 31) $256,800 Long-term Liabilities Bonds payable, 8% due January 1, 2028 $3,210,000 Add: Premium on bonds payable 209,000 $3,419,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. Sunland uses straight-line amortization for any bond premium or discount. From December 31, 2020, the bonds will be outstanding for an additional 10 years (120 months). Prepare the adjusting entry at December 31, 2022, to amortize bond premium and to accrue interest on the remaining bonds. Date Account Titles and Explanation Debit Credit Dec. 31, 2022 Interest Expe Premium on Interest Pay:

Problem 15-07A a-d The following is taken from the Sunland Company balance sheet. Sunland Company Balance Sheet (partial) December 31, 2020 Current Liabilities Interest payable (for 12 months from January 1 to December 31) $256,800 Long-term Liabilities Bonds payable, 8% due January 1, 2028 $3,210,000 Add: Premium on bonds payable 209,000 $3,419,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. Sunland uses straight-line amortization for any bond premium or discount. From December 31, 2020, the bonds will be outstanding for an additional 10 years (120 months). Prepare the adjusting entry at December 31, 2022, to amortize bond premium and to accrue interest on the remaining bonds. Date Account Titles and Explanation Debit Credit Dec. 31, 2022 Interest Expe Premium on Interest Pay:

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 73E

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