Gridley Company issued $800,000, 11%, 10-year bonds on December 31, 2013, for $730,000. Interest is payable semiannually
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Instructions
Prepare the journal entries to record the following.
(a) The issuance of the bonds.
(b) The payment of interest and the discount amortization on June 30, 2014.
(c) The payment of interest and the discount amortization on December 31, 2014.
(d) The redemption of the bonds at maturity assuming Interest for the last interest period has been paid and recorded.
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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a 2013 Dec 31 Cash 730000 Discount on Bonds Payable 70000 Bonds Payable 800...View the full answer
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Related Book For 
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
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