Bonds premium = $814,800 - $776,000 = $38,800
Bonds premium amortized each period $38,800 / 20 = $1,940
| Interest expense | $36,860 | |
| Bond premium | $1,940 | |
| Cash | $38,800 |
On the first day of the fiscal year a company issues a $776,000, 10%, 10-year bond...
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