Question
Ajax issued $2,500,000 in bonds on January 1, 2014 at a stated rate of 4% and a yield of 5%. Interest is due on June
Ajax issued $2,500,000 in bonds on January 1, 2014 at a stated rate of 4% and a yield of 5%. Interest is due on June 30th and December 31st of each year and the bond matures on December 31, 2015.
Prepare a journal entry for the issuance of the bonds on January 1, 2014.
Prepare a journal entries for the payment of interest on June 30, 2014.
Prepare a journal entry for the retirement of the bonds at maturity.
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Management And Cost Accounting
Authors: Mike Tayles, Colin Drury
11th Edition
147377361X, 978-1473773615
