Question
On February 1, 20B, Harrison Corporation sold $500,000 of 10 years, 12% bonds at $476,800 plus any accrued interest. Then bonds were dated Oct 1,
On February 1, 20B, Harrison Corporation sold $500,000 of 10 years, 12% bonds at $476,800 plus any accrued interest. Then bonds were dated Oct 1, 20A, and interest is to be paid on March 31, and September 30 (the year end is Septerber 30) 1. what is the amount of interest that will be paid to be bondholders on a monthly basis? 2. what is the amount of accrued interest the bondholders will be required to pay when they purchase the bonds? 2b. What is the amount of discount or preium? 3. Over what period of time would the discount or premium be amortized? 4. What would be the amortization amount per month assuming straight-line amortization? 5. Give the journal entr to record the sale fo the bonds on Feb 1, 19B. 6. Give the journal entry to record the first semiannual interest payment on March 31, 19B, including the amortization of any premium or discount. 7. Give the journal entry to record the second semiannual interest payment on September 30, 19B, including the amortization of any premium or discount.
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