Question
On June 30, 2014, Mischa Auer Company issued $4,181,000 face value of 13%, 20-year bonds at $4,495,535, a yield of 12%. Auer uses the effective-interest
On June 30, 2014, Mischa Auer Company issued $4,181,000 face value of 13%, 20-year bonds at $4,495,535, a yield of 12%. Auer uses the effective-interest method to amortize bond premiums or discounts. The bonds pay semiannual interest on June 30 and December 31.
Prepare the journal entries to record the following transactions.
1. The issuance of the bonds on June 30, 2014.
2. The payment of interest and the amortization of the premium on December 31, 2014.
3. The payment of interest and the amortization of the premium on June 30, 2015.
4. The payment of interest and the amortization of the premium on December 31, 2015.
Do not copy from Chegg and give complete answer with explanation
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The Fraud Audit Responding To The Risk Of Fraud In Core Business Systems
Authors: Leonard W. Vona
1st Edition
0470647264, 978-0470647264
