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List the journal entry to record the interest payment

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In January 1, 2017, Franklin Company sold 11% bonds having a maturity value of $550,000 for $570,849, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2017, and mature January 1, 2022, with interest payable December 31 of each year. Franklin Company allocates interest and unamortized discount or premium on the effective-interest basis.

Question 1. List the journal entry at the date of the bond issuance (January 1, 2017)

Question 2. List a schedule of interest expense and bond amortization for 2017-2019

Date            Cash Paid              Interest Expense          Premium Amortized            Carrying Amount of Bonds

1/1/17

12/31/17

12/31/18

12/31/19

Question 3. List the journal entry to record the interest payment and the amortization for 2017 (December 31, 2017)

Question 4. List the journal entry to record the interest payment and the amortization for 2019 (December 31, 2019)

Reference no: EM132466075

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