On January 1, 2022, Pina Colada Corp. issued $2,400,000 face value, 6%, 10-year bonds at $2,585,322. This price resulted

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On January 1 2022 Pina Colada Corp Issued 2 400 000 Face Value 6 10 Year Bonds At 2 585 322 This Price Resulted 1 (16.5 KiB) Viewed 150 times

On January 1, 2022, Pina Colada Corp. issued $2,400,000 face value, 6%, 10-year bonds at $2,585,322. This price resulted in a 5% effective interest rate on the bonds. Pina Colada uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1.

Prepare the journal entries to record the following transactions. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) (1) The issuance of the bonds on January 1, 2022. (2) Accrual of interest and amortization of the premium on December 31, 2022. The payment of interest on January 1, 2023. (3) Accrual of interest and amortization of the premium on December 31, 2023. Date Account Titles and Explanation Debit Credit Jan 1, 2022 Cash Premium on Bonds Payable Bonds Payable Dec. 31, 2022 Interest Expense Premium on Bonds Payable Interest Payable Jan. 1, 2023 Interest Payable cas Dec. 31, 2023 Interest Expense Premium on Bonds Payable Interest Payable