Practice Problem 2
The premium amortization for each interest period is $400 ($2,000 ( 5). The entry to record the first accrual of interest on December 31 is: Dec. 31 Bond Interest Expense 9,600. Premium on Bonds Payable 400. Bond Interest Payable 10,000 (To record accrued bond interest and amortization of bond premium) ................
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