Question
March 1 Issued $3,000,000 face value Pitts Co. second mortgage, 8% bonds for $3,270,600, including accrued interest. Interest is payable semiannually on December 1 and
March 1 Issued $3,000,000 face value Pitts Co. second mortgage, 8% bonds for $3,270,600, including accrued interest. Interest is payable semiannually on December 1 and June 1 with the bonds maturing 10 years from this past December 1. The bonds are callable at 102 June 1 Paid semiannual interest on Pitts Co. bonds. (Use straight-line amortization of any premium or discount.) December 1 Paid semiannual interest on Pitts Co. bonds and purchased $1,500,000 face value bonds at the call price in accordance with the provisions of the bond indenture.
Can someone show me the step by step process of how to get the June and December entries? Here is what I have so far:
3/1/14 | Cash | 3270600 | |
Bonds Payable | 3000000 | ||
Premuim | 210600 | ||
Interest Expense | 60000 | ||
6/1/14 | Interest Expense | ? | |
Premium | ? | ||
Cash | 120000 | ||
12/31/14 (To Record Interest) | Interest Expense | ? | |
Premium | ? | ||
Cash | ? | ||
12/31/14 (To Record Purcase) | ? | ? | ? |
? | ? | ? | |
? | ? | ? | |
? | ? | ? |
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