Question
On January 1, 2018, Noah Unlimited issues 12%, 20-year bonds payable with a face value of $180,000. The bonds are issued at 103 and pay
On January 1, 2018, Noah Unlimited issues 12%, 20-year bonds payable with a face value of $180,000.
The bonds are issued at 103 and pay interest on June 30 and December 3. (Assume bonds payable are amortized using the straight-line amortization method.)
| 1. | Journalize the issuance of the bonds on January 1, 2018. |
| 2. | Journalize the semiannual interest payment and amortization of bond premium on June 30, 2018. |
| 3. | Journalize the semiannual interest payment and amortization of bond premium on December 31, 2018. |
| 4. | Journalize the retirement of the bond at maturity, assuming the last interest payment has already been recorded. (Give the date.) |
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Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587
