Question
On June 30, 2020, Wildhorse Company issued $3,600,000 face value of 14%, 20-year bonds at $4,141,660, a yield of 12%. Wildhorse uses the effective-interest method
On June 30, 2020, Wildhorse Company issued $3,600,000 face value of 14%, 20-year bonds at $4,141,660, a yield of 12%. Wildhorse uses the effective-interest method to amortize bond premium or discount. 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, 2020.
(2) The payment of interest and the amortization of the premium on December 31, 2020.
(3) The payment of interest and the amortization of the premium on June 30, 2021.
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Accounting For Managers Interpreting Accounting Information For Decision Making
Authors: Paul M. Collier
5th Edition
111900294X, 978-1119002949
