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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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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