Question
LA Forge Inc. issued $500,000, 6% bonds on August 1, 2022. Interest is payable semi-annually on February 1 and August 1. The bonds mature on
LA Forge Inc. issued $500,000, 6% bonds on August 1, 2022. Interest is payable semi-annually on February 1 and August 1. The bonds mature on August 1, 2025. At the time of issuance, similar bonds were trading at 8%. LA Forge has a year-end of December 31.
Required:
Create a bond amortization schedule for the term of the bond.
Prepare the required journal entries for 2022 and 2023.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To create a bond amortization schedule we need to calculate the semiannual interest payments and the ...
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Step: 2
Step: 3
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Intermediate Accounting Reporting and Analysis
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
2nd edition
9781305727557, 1285453824, 9781337116619, 130572755X, 978-1285453828
