Question
On January 1 of this year, Victor Corporation sold bonds with a face value of $1,550,000 and a coupon rate of 9 percent. The bonds
On January 1 of this year, Victor Corporation sold bonds with a face value of $1,550,000 and a coupon rate of 9 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. Victor uses the straight-line amortization method and also uses a premium account. Assume an annual market rate of interest of 8 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.)
1 Prepare the journal entry to record the issuance of the bonds.
2 Prepare the journal entry to record the interest payment on June 30 of this year using straight line amortization
3 What bonds payable amount will Victor report on its June 30 balance sheet?
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