On January 1, 201X, Lester Corporation sold $380,000 of 5%, 10-year bonds at 99. Interest is to

Question:

On January 1, 201X, Lester Corporation sold $380,000 of 5%, 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

(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?

Corporation
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...

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