1. (Entries for Bond Transactions)

Foreman Cleaners issued 800,000 of 10%, 20-year bonds on January 1, 2019, at 119.792 to yield 8%. Interest is payable semiannually on July 1 and January 1.

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, 2019.

c. The accrual of interest and the related amortization on December 31, 2019.

2. (Entries for Bond Transactions)

Assume the same information as in 1, except that the bonds were issued at 84.95 to yield 12%.

Instructions

Prepare the journal entries to record the following. (Round to the nearest euro.)

a. The issuance of the bonds.

b. The payment of interest and related amortization on July 1, 2019.

c. The accrual of interest and the related amortization on December 31, 2019.