Answer
Step1:
2010 Jan.01
Cash 515,000 dollars
Bonds Payable 500,000 dollars
Premium on Bonds payable 15,000 dollars
Step2:
2010 Dec. 31
Bonds Interest Expenses 34,250 dollars
Premium on Bonds payable 750 dollars
Bonds Interest payable 35,000 dollars
Step3:
2011 Jan. 01
Bonds interest payable 35,000 dollars
Cash 35,000 dollars
Step4:
2030 Jan. 01
Bonds Payable 500,000 dollars
Cash 500,000 dollars
Work Step by Step
Step1:
To record issue of bonds at a premium
Step2:
To record accrued bond interest and Amortization of bond premium
Step3:
To record payment of bonds interest
Step4:
To record redemption of bonds on maturity
