Addison Incorporated issued $200,000 of 13% bonds on July 1, 2007 for $206,801.60. The bonds were dated
Question:
Addison Incorporated issued $200,000 of 13% bonds on July 1, 2007 for $206,801.60. The bonds were dated January 1, 2007, pay interest on each June 30 and December 31, are due December 31, 2011, and were issued to yield 12%. The company uses the effective interest method of amortization.
Required
Prepare the journal entries to record the issue of the bonds on July 1, 2007, and the interest payments on December 31, 2007 and June 30, 2008.
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2007 July 1 Cash 20680160 Premium on Bonds Payable 680160 Bonds Payable 20000000 ADDISON INCORPORATE...View the full answer
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Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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