Question
Bonds issued between interest dates using Straight-line Interest: Prepare the journal entries to record the following transactions relating to long-term bonds of White Company Inc.
Bonds issued between interest dates using Straight-line Interest:
Prepare the journal entries to record the following transactions relating to long-term bonds of White Company Inc. (SHOW COMPUTATIONS).
(a) On June 1, 2023, White issued $400,000, 9% bonds for $439,840, which includes accrued interest. Interest is payable annually on January 1 and the bonds mature on January 1, 2033.
(b) On July 1, 2025, White retired $100,000 of the bonds at 103 plus accrued interest. White uses straight-line amortization.
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Fraud Examination
Authors: W. Steve Albrecht, Conan C. Albrecht, Chad O. Albrecht, Mark F. Zimbelman
3rd edition
324560842, 978-0324560848
