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

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.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2015

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(b)Prepare a bond premium amortization schedule for the first 4 interest periods.

Semiannual Interest Periods	Interest to Be Paid	Interest Expense to Be Recorded	Premium Amortization	Unamortized Premium	Bond Carrying Value
Issue date	$	$
1
2
3
4

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

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