On the first day of the fiscal year a company issues a 23000

On the first day of the fiscal year, a company issues a $2,300,000, 12%, 6-year bond that pays semiannual interest of $138,000 ($2,300,000 × 12% × ½), receiving cash of $2,614,591. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

a. Earnings per share on common stock $

b. Earnings per share on common stock $

c. Earnings per share on common stock $

Solution

Interest expense 111784 Premium on bonds payable 26216 =(2614591-2300000)/12            Cash 138000