Answer:
Dec. 31
Dr Interest expense $405,000
Cr Discount on bonds payable $5,000
Cr Cash $400,000
Explanation:
Preparation of the journal entry to record interest expense and bond premium amortization on December 31, 2022
Dec. 31
Dr Interest expense $405,000
($400,000+$5,000)
Cr Discount on bonds payable $5,000
[$5,000,000 - ($5,000,000 x 101/100)/10]
Cr Cash ($5,000,000 x 8%) $400,000
(To record interest expense and bond premium amortization)
