AB 116 WEEK 5 On July 1 2014 Flanagin Corporation issued 1800400 10 10year bonds at 2,045,086. This price resulted in an effective-interest rate of 8 on the bonds. Flanagin uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest July 1 and January 1.
Prepare the journal entry to record the issuance of the bonds on July 1, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Prepare an amortization table through December 31, 2015 (3 interest periods), for this bond issue. (Round answers to 0 decimal places, e.g. 15,250.)
Prepare the journal entry to record the accrual of interest and the amortization of the premium on December 31, 2014. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Prepare the journal entry to record the payment of interest and the amortization of the premium on July 1, 2015, assuming no accrual of interest on June 30. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Prepare the journal entry to record the payment of interest and the amortization of the premium on July 1, 2015, assuming no accrual of interest on June 30. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Prepare the journal entry to record the accrual of interest and the amortization of the premium on December 31, 2015. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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