Question

Saylor Co sold $3,000,000,896, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022 and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually. Prepare the journal entries to record the issuance of the bonds assuming they sold at: (1) 103 and (2) 9a. (Credit account titles are automatically indented when amount is entered. Do not indent manually) No. Date Account Titles and Explanation Debit Credit 1 1/1/22 2 1/1/22 e Textbook and Media List of Accounts Prepare amortization table for issuance of the bonds sold at 103 for the first three interest payments Annual Interest Periods Interest to Be Paid Interest Expense to Be Recorded Premium Amortization Unamortized Premium Bond Carrying Value Issue date $ Prepare amortization table for issuance of the bonds sold at 98 for the first three interest payments. Annual Interest Periods Interest to Interest Expense to Be Recorded Discount Amortization Unamortized Discount Bond Carrying Value Be Paid Issue date $ e Textbook and Media List of Accounts Prepare the journal entries to record interest expense for 2022 under both of the bond issuances assuming they sold at: (1) 103 and (2) 98. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1 12/31/22 2 12/31/22

Answer 1

Amortization table-Straight-Line method
Premium on Bond =$90,000
Date	Interest Payment	Interest expenses	Premium amorrtization	Unamortized Premium	Bond carrying amount
Issue date	-	-	-	90,000	30,90,000
1	2,40,000	2,31,000	9,000	81,000	30,81,000
2	2,40,000	2,31,000	9,000	72,000	30,72,000
3	2,40,000	2,31,000	9,000	63,000	30,63,000
	Date	Accounts and explanation	Debit(in $)	Credit(in $)
	01-Jan-22	Cash	30,90,000
		Bonds Payable		30,00,000
		Premium on Bonds Payable		90,000
		(To Bond issued at premium)
	31-Dec-22	Interest expenses	2,31,000
		Premium on Bonds Payable	9,000
		Cash		2,40,000
Amortization table-Straight-Line method
Discount on Bond =$60,000
Date	Interest Payment	Interest expenses	Discount amorrtization	Unamortized Discount	Bond carrying amount
Issue date	-	-	-	60,000	29,40,000
1	2,40,000	2,46,000	6,000	54,000	29,46,000
2	2,40,000	2,46,000	6,000	48,000	29,52,000
3	2,40,000	2,46,000	6,000	42,000	29,58,000
	Date	Accounts and explanation	Debit(in $)	Credit(in $)
	01-Jan-22	Cash	29,40,000
		Discount on Bonds payable	60,000
		Bonds Payable		30,00,000
	31-Dec-22	Interest expenses	2,40,000
		Premium on Bonds Payable	6,000
		Cash		2,46,000
When Bond is issued at premium
	Long term liabilities	$30,00,000
Add:	Unamortized Premium	$81,000	$30,81,000
When Bond is issued at discount
	Long term liabilities	$30,00,000
Less:	Unamortized Discount	$54,000	$29,46,000