On January 1, 202X, Langston Corporation sold $400,000 of 6% 10-year bonds at 99. Interest is to

Question:

On January 1, 202X, Langston Corporation sold $400,000 of 6% 10-year bonds at 99. Interest is to be paid on June 30 and December 31. The straight-line method of amortizing the discount is used. Prepare 

(1) An amortization schedule for the first three semiannual periods and 

(2) Journal entries to record the following:
a. Bond issue on January 1.
b. Semiannual interest payments on June 30 and December 31 for interest and amortization of discount.
c. If the bonds were issued on April 1 and interest was paid on October 1 and April 1, what would be the year-end adjusting entry on December 31 to record accrued interest and amortization of discount?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: