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Clemente Corporation issued the following bonds: Date of issue and sale: Principal amount: Sale price of bonds: Denomination of bonds: Life of bonds: Stated rate:
Clemente Corporation issued the following bonds: Date of issue and sale: Principal amount: Sale price of bonds: Denomination of bonds: Life of bonds: Stated rate: June 1, 2018 $1,000,000 102 $1,000 10 years 7 % %, payable semiannually on May 31 and November 30 Prepare journal entries for: a. Issuance of the bonds. b. Interest payment and premium amortization on the bonds on November 30, 2018 c. Year-end adjustment on the bonds for 2018. d. Reversing entry for the beginning of 2019. e. Redemption of $150,000 of the bonds on June 1, 2021, at 103 %
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