San Diego Company sold ($ 1,500,000,12 %, 10)-year bonds on July 1, 1998. The bonds were dated
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San Diego Company sold \(\$ 1,500,000,12 \%, 10\)-year bonds on July 1, 1998. The bonds were dated July 1, 1998, and pay interest July 1 and January 1. San Diego Company uses the straight-line method to amortize bond premium or discount. Assume no interest is accrued on June 30 .
\section*{Instructions}
(a) Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 1998 , assuming that the bonds sold at 102 .
(b) Prepare journal entries as in part
(a) assuming that the bonds sold at 94 .
(c) Show the balance sheet presentation for each bond issue at December 31, 1998.
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Related Book For
Financial Accounting Tools For Business Decision Making
ISBN: 9780471169192
1st Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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