Question
On January 1, 2022, XYZ Corporation issued $200,000 of 8% bonds due in five years, with interest payable annually on December 31st. The bonds were
On January 1, 2022, XYZ Corporation issued $200,000 of 8% bonds due in five years, with interest payable annually on December 31st. The bonds were issued at a premium of $10,000. XYZ uses the effective-interest method to amortize the premium on its bond investments. Show the journal entries for the following transactions:
- The issuance of the bonds on January 1, 2022
- The payment of interest on December 31, 2022
- The amortization of the bond premium on December 31, 2022
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Financial Accounting
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
3rd edition
9780077506902, 78025540, 77506901, 978-0078025549
