Assume that the bonds in BE14-11 were issued at 98. Assume also that Grenier Limited records the

Question:

Assume that the bonds in BE14-11 were issued at 98. Assume also that Grenier Limited records the amortization using the straight-line method. Prepare the journal entries related to the bonds for
(a) January 1,
(b) July 1, and
(c) December 31.
In BE14-11
Grenier Limited issued $300,000 of 10% bonds on January 1, 2017. The bonds are due on January 1, 2022, with interest payable each July 1 and January 1. The bonds are issued at face value. Grenier uses the effective interest method.