Celine Dion Company issued $600,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is

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Celine Dion Company issued $600,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is payable semiannually on July 1 and January 1. Dion Company uses the straight-line method of amortization for bond premium or discount.

Instructions

Prepare the journal entries to record the following.

a. The issuance of the bonds.

b. The payment of interest and the related amortization on July 1, 2020.

c. The accrual of interest and the related amortization on December 31, 2020.

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Intermediate Accounting

ISBN: 978-1119503668

17th edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfiel

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Question Posted: Nov 28, 2019 07:00 AM

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Celine Dion Company issued $600,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is

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a b c 1120 Cash 6...View the full answer

Intermediate Accounting

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