Stottard Company issued $650,000 of 8%, 10-year bonds on June 1, 2011, at 103. The bonds were
Question:
Stottard Company issued $650,000 of 8%, 10-year bonds on June 1, 2011, at 103. The bonds were dated June 1, and interest is payable on June 1 and December 1 of each year.
Required:
1. Record the issuance of the bonds on June 1, 2011.
2. Record the interest payment on December 1, 2011. Stottard uses the straight-line method of amortization.
3. Record the interest accrual on December 31, 2011, including amortization.
4. Record the journal entries required on June 1, 2021, when the bonds mature.
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Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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