Question
On January 1 2014 Gumbo Corporation issued 600,000 9% 5-year bonds dated January 1 2014 at 104. The bonds pay interested semi-annually on January 1
On January 1 2014 Gumbo Corporation issued 600,000 9% 5-year bonds dated January 1 2014 at 104. The bonds pay interested semi-annually on January 1 and July 1. Gumbo Corporation has a December 31 year end.
Assume amortization of $1,700 and $2,100 respectively on the first two semi-annual interest periods.
Prepare the journal entries related to the bond issue on the following dates:
January 1 2014
July 1 2014
December 31 2014
January 1 2015
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Accounting Theory Conceptual Issues in a Political and Economic Environment
Authors: Harry I. Wolk, James L. Dodd, John J. Rozycki
9th edition
9781483375014, 1483375013, 9781506300108, 1506300103, 978-1483375021
