Question
On January 1, 2020, Flynn Corporation sold $600,000 of 8% bonds at $624,000.The bonds are due on January 1, 2025 and pay interest semiannually every
On January 1, 2020, Flynn Corporation sold $600,000 of 8% bonds at $624,000.The bonds are due on January 1, 2025 and pay interest semiannually every July 1 and January 1.The bonds were sold to yield a 6% effective rate.Flynn closes its books annually on December 31.
(a) How do i make the general journal entry to record the sale of the bonds.
(b) Can you please explain the general journal entry to record the interest payment on July 1, 2020, assuming that Flynn uses the straight-line method to amortize the bond premium.
(c) How do i make the general journal entry to record the interest accrual on December 31, 2020, assuming that Flynnuses the straight-line method to amortize the bond premium.
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Accounting Principles
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
11th Edition
111856667X, 978-1118566671
