On January 1, 201X, Wilcox Corporation issued $300,300 of 10%, 10-year bonds for $265,916, yielding a market

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On January 1, 201X, Wilcox Corporation issued $300,300 of 10%, 10-year bonds for $265,916, yielding a market rate of 12%. Interest is paid on July 1 and December 31. Wilcox uses the interest method to amortize the discount.

1. Prepare an amortization schedule for the first three semiannual periods.

2. Prepare journal entries to record the following:

a. Bond issue on January 1.

b. Semiannual interest payments on July 1 and December 31 as well as amortization of discount.

3. If the bonds were issued on March 1 and interest was paid on September 1 and March 1, what would be the year-end adjusting entry on December 31, 201X, to record accrued interest and amortization of discount?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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College Accounting A Practical Approach

ISBN: 9780134729312

14th Edition

Authors: Jeffrey Slater, Mike Deschamps

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