Question
Joe Ltd. issued $3,000,000 of 6%, 10 year bonds on September 30, 2022 when the effective interest rate was 8%. The bonds pay interest semi-annually
Joe Ltd. issued $3,000,000 of 6%, 10 year bonds on September 30, 2022 when the effective interest rate was 8%. The bonds pay interest semi-annually on June 30 and December 31. The firm uses the effective interest method of amortizing discounts and premiums. On September 30, 2023, 70% of the bonds were called in at 98 and retired. (Use an amortization table)
| Date | Interest Paid | Interest Expense | Amortization | Carrying Amount |
| Sept,30 2022 |
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| June 30 2022 |
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| December 30, 2022 |
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| June 30 |
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| December 30 |
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(a) Prepare journal entries for the following:
September 1, 2022 Issuance of bonds
December 31, 2022 Payment of interest
June 30, 2023 Payment of interest
September 30, 2023 Retirement of 70% of the bonds
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