Exercise

07.xls Step 2

Date a. 1/1/2009

Journal Entries Accounts Cash Premium of Bond payable Bond payable

Debit 102,000.00

Credit

2,000.00 100,000.00 2,433.33 66.67 2,500.00 2,500.00 2,500.00 2,433.33 66.67 2,500.00 2,500.00 2,500.00 2,433.33 66.67 2,500.00 100,000.00 100,000.00 2,500.00 2,500.00

b. 6/30/2009 Interest Expense Premium of Bond payable Interest payable c. 7/1/2009 Interest payable Cash d. 6/30/2023 Interest Expense Premium of Bond payable Interest payable e. 7/1/2023 Interest payable Cash f. 12/31/2023 Interest Expense Premium of Bond payable Interest payable g. 1/1/2024 Bond payable Cash Interest payable Cash

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