ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 263

(g)

Notes payable (due in 4 years)

(h)

Premium on bonds payable

(i)

Bonds payable (due in 3 years)

5) On June 30, 2014, Mischa Auer Company issued
$4,166,000 face value of 13%, 20-year bonds at $4,479,407, a
yield of 12%. Auer uses the effective-interest method to
amortize bond premium or discount. The bonds pay semiannual
interest on June 30 and December 31.

(a) Prepare the journal entries to record the following
transactions. (Round answers to 0 decimal places, e.g. 38,548. If
no entry is required, select "No Entry" for the account titles and
enter 0 for the amounts. Credit account titles are automatically
indented when amount is entered. Do not indent manually.)