Answer
Step1:
2010 Jan. 1
Cash 483,120 dollars
Bonds Payable 450,000 dollars
Premium on bonds payable 33,120 dollars
Step2:
2010 Dec. 31
Bonds Interest Expenses 28,987 dollars
Premium on bonds payable 2,513 dollars
Bonds Interest payable 31,500 dollars
Step3:
2011 Jan. 01
Bonds interest payable 31,500 dollars
Cash 31,500 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
