Exercise 11-7 Straight-Line Method

Waterbury Corporation issued $16,000,000 in 8.5 percent, five-year bonds on March 1, 2014, at 96. The semiannual interest payment dates are September 1 and March 1.

Exercise 11-7 Straight-Line Method Waterbury Corporation issued $16,000,000 in 8.5 percent, five-year bonds on March 1, 2014, at 96. The semiannual interest payment dates are September 1 and March 1. Hide Prepare the journal entries to record the issue of the bonds by Waterbury on March 1, 2014, and the first two interest payments on September 1, 2014, and March 1, 2015. Use the straight- line method and ignore year-end accruals. If an amount box does not require an entry,veit blank 2014 Mar. 1 Cash Unamortized Bond Discount Bonds Payable issue of 8.5%, 5-year bonds at 96 Sept. 1 Bond Interest Expense 03 Unamortized Bond Discount Cash To pay semiannual interest and amortize the discount 2015 Mar. 1 Bond Interest Expense Unamortized Bond Discount Cash To pay semiannual interest and amortize the discount