Answer:
Explanation:
Issue price of Bonds = 4360000*104%=4534400
Face value of Bonds = 4360000
Premium on bonds = 174400
31-Dec-21
Dr Interest Expense $161,320
Premium on Bond Payable ($1,744,00/20) $8,720
Cash ($4360000*7%/2) $152,600
01-Jan-22
Dr Bond Payable $436,000
Dr Premium on Bond Payable (174400-174400/20*4)*10% $13,952
Dr Common Stock (436000/1000*8*100) $348,800
Cr Paid in capital in excess of par $101,152
31-Mar-22
Dr Interest Expense $7,194
Dr Premium on Bond Payable (13952/8*3/12) $436
Cr Interest Payable (436000*7%/12*3) $7,630
Dr Bond Payable $436,000
Dr Premium on Bond Payable $13,952
Cr Common Stock $348,800
Cr Paid in capital in excess of par $101,152
30-06-2022
Dr Interest Expense $115,104
Dr Premium on Bond Payable (174400*80%)/20 $6,976
Cr Interest Payable $7,360
Cr Cash (4360000*80%*7%/2+7360) $129,440
