Joseph Company issued $800,000, 11%, 10-year bonds on December 31, 2009, for $730,000. Interest is payable semiannually
Question:
Joseph Company issued $800,000, 11%, 10-year bonds on December 31, 2009, for $730,000. Interest is payable semiannually on June 30 and December 31. Joseph Company uses the straight-line method to amortize bond premium or discount.
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, 2010.
(c) The payment of interest and the discount amortization on December 31, 2010.
(d) The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.
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a 2009 Dec 31 Cash 730000 Discount on Bonds Payable 70000 Bonds Payable 8...View the full answer
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Related Book For 
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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