Question

Problem 10-08A (Part Level Submission) Bramble Corporation sold $3,300,000, 9%, 5-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on January 1. Bramble Corporation uses the straight-line method to amortize bond premium or discount. (a) Your answer is correct. Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2022, assuming that the bonds sold at 107. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 3,531,000|| Premium on Bonds Payable T. 231,000 Bonds Payable 3,300,000 Dec. 31 Interest Expense 250,800 Premium on Bonds Payable 46,200 Interest Payable 297,000 Click if you would like to Show Work for this question: Open Show Work
. I just need part C completed.

Answer 1

c
1
Balance Sheet (Partial)
December 31,2022
Current Liabilities
Interest payable		297000
Long term Liabilities:
Bonds payable	3300000
Add: Premium on Bonds payable	184800	3484800
2
Balance Sheet (Partial)
December 31,2022
Current Liabilities
Interest payable		297000
Long term Liabilities:
Bonds payable	3300000
Less: Discount on Bonds payable	105600	3194400
Workings:
Premium on issue	231000	=3300000*0.07
Less: Premium amortized	46200	=231000/5
Premium on Bonds payable	184800
Discount on issue	132000	=3300000*0.04
Less: Premium amortized	26400	=132000/5
Discount on Bonds payable	105600