Question
On January 1, 2021, Shell Corporation issued $600,000, 9%, 5-year bonds, dated January 1, 2021, at 104. The bonds pay interest semi-annually on January 1
On January 1, 2021, Shell Corporation issued $600,000, 9%, 5-year bonds, dated January 1, 2021, at 104. The bonds pay interest semi-annually on January 1 and July 1. The company has a December 31 year end. Assume amortization of $1,700 and $2,100, respectively for the first two semi-annual interest periods.
Instructions
Prepare the journal entries that Shell Corporation would make related to the bond issue on the dates indicated below:
January 1, 2021 July 1, 2021 December 31, 2021 January 1, 2022
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Law, Business And Society
Authors: Tony McAdams, Kiren Dosanjh Zucker, Kristofer Neslund, Kari Smoker
12th Edition
1259721884, 978-1259721885
