On January 1, 2015, Seton Corporation sold a $ 10,000,000, 5.5 percent bond issue. The bonds were

Question:

On January 1, 2015, Seton sold a $ 10,000,000, 5.5 percent bond issue. The bonds were dated January 1, 2015, had a yield of 6 percent, pay interest each December 31, and mature 10 years from January 1, 2015.
Required:
1. Prepare the journal entry to record the issuance of the bonds.
2. Prepare the journal entry to record the interest payment on December 31, 2015. Use straight- line amortization.
3. Show how the bond interest expense and the bonds payable should be reported on the for 2015. Financial Statements
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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...