Question

Please help us to get the amount for entries. This is ASPE question(Canadian private company standards).

On January 1, 2020. Sandhill Corporation issued 11% bonds with a par value of $5,170,000, due in 10 years. The company incurred $195,000 in costs associated with the issuance of the bonds, which were capitalized. The bonds were issued at 102, and paid interest on January 1 and July 1 each year. Sandhill's year-end was March 31. The company followed ASPE and chose to use the straight-line method of amortization for bond discounts or premiums. Your answer is partially correct. Prepare the journal entry to record the issue of the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation Jan. 1 Cash Bonds Payable eTextbook and Media List of Accounts Your answer is partially correct. Prepare the entries required on March 31, 2020 to accrue interest and record any amortization required. (Credit account titles are automatically indented when the amount is entered. Do not Indent manually.) Debit Credit Account Titles and Explanation Interest Expense Bonds Payable Interest Payable 142175

Answer 1

Issue of bonds cash (51700x $10a) lem.cost - $5,078,400 Bond issue expenses $ 195,000 to puemium on bond payable to Bond payable (Being issue of Bonds at puemium) $ 103,400 $ 5,1701000 Notes: cash showed be deducted for the expenses incurred. Interest and AmortiCHON Puemium on bonds payable Intuelt payable to poterest expense. $ 2.585 $ 139,690 $ 142,125 Premium 2 $ 103,400 2 $540$2585 2 20