Question
On January 1, 2019, Western Manufacturing Corporation issued $3,000,000, 10%, 5-year bonds dated January 1, 2019, at 95%. The bonds pay semi-annual interest on January
On January 1, 2019, Western Manufacturing Corporation issued $3,000,000, 10%, 5-year bonds dated January 1, 2019, at 95%. The bonds pay semi-annual interest on January 1 and July 1. The company uses the straight-line method of amortization and has a December 31, year end.
Instructions:
Prepare the journal entries to record the following:
The issuance of bonds on January 1, 2019
The payment of interest and the discount (or premium) amortization on July 1, 2019.
The accrual of interest and the discount (or premium) amortization on December 31, 2019.
The payment of interest on January 1, 2020
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The CFO Guidebook
Authors: Steven M. Bragg
5th Edition
1642211095, 978-1642211092
