Bonds Payable at Premium
Illustrative Entries
| 1-1-X1 |
Cash |
108,530 |
||
| Premium on Bonds Payable |
8,530 |
|||
| Bonds Payable |
100,000 |
|||
|
To
record issuance of 100, 8%, 5-year bonds at premium |
||||
| periodically |
Interest Expense |
3,147 |
||
| Premium on Bonds Payable |
853 |
|||
| Cash |
4,000 |
|||
|
To
record interest payment (this entry occurs on every interest payment date
at 6 month intervals) and amortization of premium |
| 12-31-X5 |
Bonds Payable |
100,000 |
||
| Cash |
100,000 |
|||
| To record payment of face value at maturity |