FIXED INCOME SECURITIES

To record premium amortization. 2008 Jan. 1 Interest Payable 15,000. Cash 15,000. To record payment of semiannual interest. Apr. 1 Premium on Bonds Payable 77* Interest Expense. 77. To record premium amortization. *Premium amortization for 3 months on reacquired bonds: $9,000 ( 1/3 ( 3/117 = $77 (rounded) 2008 Apr. 1 Bonds Payable 100,000 ................
................