Question
On the first day of the current fiscal year, $1,500,000 of 10-year, 8% bonds, with interest payable semiannually, were sold for $1,225,000. Present entries to
On the first day of the current fiscal year, $1,500,000 of 10-year, 8% bonds, with interest payable semiannually, were sold for $1,225,000. Present entries to record the following transactions for the current fiscal year. Be sure to clearly indicate what accounts/amounts are debited and what accounts/amounts are credited.
a.) Issuance of bonds
b.) Semiannual interest payment (record as separate entry from discount amoritation)
c.) Semiannual amortization of bond discount (using straight-line method of amoritization)
Please show as journal for a, b, and c.
This question has been answered 3 times with three different entires. I'm not sure which one is correct.
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