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Celine Dion Company issued $1,200,000 of 12% 10 year bonds on January 1, 2017 at 103 Interest is payable semiannually on July 1 and January
| Celine Dion Company issued | $1,200,000 | of | 12% | 10 | year bonds on | |
| January 1, 2017 at | 103 | Interest is payable semiannually on July 1 and January 1. | ||||
| Dion Company uses the effective interest method of amortization for bond premium or discount. | ||||||
| Assume an effective yield of | 9.7705% | (market interest rate at issurance). | ||||
| Instructions: | ||||||
| Prepare the journal entries to record the following. (Round to the nearest dollar.) | ||||||
| (a) The issuance of the bonds. | ||||||
| Jan 1, 17 | ||||||
| (b) The payment of interest and related amortization on July 1, 2017. | ||||||
| Jul 1, 17 | ||||||
| (c) The accrual of interest and the related amortization on December 31, 2017. | ||||||
| Dec 31, 17 | ||||||
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
9th Canadian Edition, Volume 2
978-0470161012
