Please provide the answer in detail On June 30 2017 Carla Vi

Please provide the answer in detail!

On June 30 2017 Carla Vista Limited issued $6 million of 20-year, 11% bonds for $6,514,802, which provides a yield o 10% The company uses the effective interest discount. The bonds pay semi-annual interest on June 30 and December 31 et odtoa o any bond prem um Question 1 Prepare the journal entries to record the following transactions: (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the 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 June 30, 2017 2. The payment of interest and the amortization of the premium on December 31, 2017 3. The payment of interest and the amortization of the premium on June 30, 2018 4. The payment of interest and the amortization of the premium on December 31, 2018 Date Account Titles and Explanation Debit Credit June 30, 2017 Dec. 31, 2017 June 30, 2018 Dec. 31, 2018

Solution

Journal entries :

Date	accounts & explanation	debit	credit
June 30,2017	Cash a/c	6514802
	Bonds payable a/c		6000000
	Premium on bonds payable a/c		514802
Dec 31,2017	Interest expenses a/c (6514802*10%*6/12)	325740
	Amortization of premium on bonds payable a/c	4260
	Cash a/c (6000000*11%*6/12)		330000
June 30,2018	Interest expenses a/c (6514802-4260*10%*6/12)	325527
	Amortization of premium on bonds payable a/c	4473
	Cash a/c (6000000*11%*6/12)		330000
Dec 31,2018	Interest expenses a/c (6514802-4260-4473*10%*6/12)	325303
	Amortization of premium on bonds payable a/c	4697
	Cash a/c (6000000*11%*6/12)		330000