accounting-Wainwright Electric sold $2,576,000, 10%, 10-year bonds

QUESTION

Wainwright Electric sold $2,576,000, 10%, 10-year bonds on January 1, 2015. The bonds were dated January 1 and pay interest July 1 and January 1. Wainwright Electric uses the straight-line method to amortize bond premium or discount. The bonds were sold at 103. Assume no interest is accrued on June 30.(a)Your answer is correct.Prepare the journal entry to record the issuance of the bonds on January 1, 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditJan. 1, 2015SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWERLINK TO TEXTAttempts: 1 of 3 used(b)Prepare a bond premium amortization schedule for the first 4 interest periods.Semiannual Interest PeriodsInterest to Be PaidInterest Expense to Be RecordedPremium AmortizationUnamortized PremiumBond Carrying ValueIssue date$$1234

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