Explanations Calculations if needed please Brief Exercise 1

**Explanations / Calculations if needed please

*Brief Exercise 14-6 On January 1, 2017, Splish Corporation issued $590,000 of 9% bonds, due in 8 years. The bonds were issued for $558 028, and pay interest each july 1 and January 1 Splish uses the effective interest method. Prepare the company\'s o mal entries for a the January 1 issuance, b the july 1 interest payment, and c) the December 31 a ust ng entry. A s me an eme tive interest rate or i 0%. Rou d intern ediate alculatio s to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548. If no entry is required, select \"No Entry for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit (a) Jan. 1, 2017

Solution

Amort Chart Date Cash Interest Discount Unamortized Carrying Interest Expense Amortized Discount Value 01.01.2017 31972 558028 01.07.2017 26550 27901 1351 30,621 559,379 01.01.2018 26550 27969 1419 29,202 560,798 Journal entries Date Account title and explanation Debit Credit 01.01.2017 Cash Account Dr. 558028 Discount on bonds payable Dr. 31972      Bonds payable 590000 01.07.2018 Interest expense Dr. 27901       Cash account 26550        Discount on bonds payable Account 1351 31.12.17 Interest expense Account Dr. 27969       Interest payable Account 26550       Discount n bonds payable Account 1419