Golden Inc. issues $4 million, 5-year, 10% bonds at 102, with interest payable annually on January 1.

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Golden Inc. issues $4 million, 5-year, 10% bonds at 102, with interest payable annually on January 1. The straight-line method is used to amortize bond premium.

(a) Prepare the journal entry to record the sale of these bonds on January 1, 2017.

(b) Prepare the adjusting journal entry to record interest expense and bond premium amortization on December 31, 2017.

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Accounting Principles

ISBN: 978-1118875056

12th edition

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

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Question Posted: Apr 23, 2020 07:07 AM

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Golden Inc. issues $4 million, 5-year, 10% bonds at 102, with interest payable annually on January 1.

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Date Account Title and Explanation Debit Credit Jan1 Cash 4080000 B...View the full answer

Accounting Principles

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