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March 1 Issued $ 3 2 0 , 0 0 0 ( face value ) 8 % bonds for $ 3 4 8 , 8
March
Issued $face value bonds for $ including accrued interest. Interest is payable semiannually on December and June with the bonds maturing years from the previous December The bonds are callable at
June
Paid semiannual interest on the bonds. Use straightline amortization for any premium or discount.
December
Paid semiannual interest on the bonds, and then purchased $ face value bonds at the call price in accordance with the provisions of the bond indenture.
Prepare the necessary journal entries to record the above transactions relating to the longterm issuance of bonds by Splish Brothers Corp. The journal entries to be done are dated: March June December The December journal entry is two parts: recording payment of interest and recording gain on redemption.
List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter for the amounts. Record journal entries in the order
presented in the problem. Do not round intermediate calculations. Round answers to decimal places, eg
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