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On December 31 Wintergreen, Incorporated, issued $150,000 of 7 percent, 10-year bonds at a price of 93.25. On December 31 Wintergreen, Incorporated, issued $150,000 of
On December 31 Wintergreen, Incorporated, issued $150,000 of 7 percent, 10-year bonds at a price of 93.25.
On December 31 Wintergreen, Incorporated, issued $150,000 of 7 percent, 10-year bonds at a price of 93.25. Wintergreen received $139,875 when it issued the bonds (or $150,000 x .9325). After recording the related entry, Bonds Payable had a balance of $150,000 and Discounts on Bonds Payable had a balance of $10,125. Wintergreen uses the straight-line bond amortization method. The first semiannual interest payment was made on June 30 of the next year.
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