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Barnes Company issued $625,000 of 10.25%, 20 year bonds on January 1, 2022 at 102. Interest is payable semi-annually on January 1 and July
Barnes Company issued $625,000 of 10.25%, 20 year bonds on January 1, 2022 at 102. Interest is payable semi-annually on January 1 and July 1. The company uses the effective interest method of amortization for the bond premium or discount. Assume an effective yield of 9.8%. Prepare the entries for issuance of the bonds, the interest payment on July 1, the accrual of interest on December 31, 2022, and the payment of interest on January 1, 2023. 1/1/22 7/1/22 12/31/22 1/1/23
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