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Computing bond proceeds, entries for bond issuing and amortizing premium by straight-line method. Lido Corporation wholesales oil and grease products to equipment manufactures. On March
Computing bond proceeds, entries for bond issuing and amortizing premium by straight-line method.
Lido Corporation wholesales oil and grease products to equipment manufactures. On March 1, 1997, Lido Corporation issued $1,000,000 of five- year, 12% bonds at an effective interest rate of 10%. Interest is payable semiannually on March 1 and September 1. Journalize the entries to record the following:
- Sale of bonds on March 1, 1997, (Use the tables of present values in The Information Tab to determine the bond proceeds.)
- First interest payment on September 1, 1997, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar).
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