Question
On the first day of the fiscal year, Lira Co. issued $1,000,000 of 10-year, 7% bonds for $1,050,000, with interest payable semiannually.Omit Inc. purchased the
On the first day of the fiscal year, Lira Co. issued $1,000,000 of 10-year, 7% bonds for $1,050,000, with interest payable semiannually.Omit Inc. purchased the bonds on the issue date for the issue price.The journal entry to record the amoritization of the bond premium (by straight-line method) for the year byOmit Inc. includes a credit to:
a Interest Revenue for $5,000
b Interest Revenue for $2,500
c Investment in Lisbon Co. Bonds $5,000
d Investment in Lisbon Co. Bonds $2,500
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Principles of Accounting
Authors: Needles, Powers, crosson
11th Edition
1439037744, 978-1133626985, 978-1439037744
