Accounting for Bonds Issued at a Premium
On March 1, 2009, Roger Corporation issued $90,000 of 12%, five-year bonds at 110. The
bonds were dated March 1, 2009, and interest is payable on March 1 and September 1.
Roger records amortization using the straight-line method. Roger’s financial reporting year
ends on December 31.
Required:
Provide all necessary journal entries on each of the following dates:
1. March 1, 2009.
2. September 1, 2009.
3. December 31, 2009.
4. March 1, 2014.