Question
Plymouth Corporation issued $200,000 of 9%, five-year bonds for 150,000 (bonds were issued at discount) on January 1, 2000. Interest is paid semi-annually on January
Plymouth Corporation issued $200,000 of 9%, five-year bonds for 150,000 (bonds were issued at discount) on January 1, 2000. Interest is paid semi-annually on January 1 and July 1. Plymouth Corporation uses the straight-line method of amortization. Record the following transactions in the journal below
Transactions for 2000
Jan. 1 Issued $200,000 of 5-year, 9% bonds at $150,000.
Jul. 1 Recorded the interest payment.
Dec. 31 Recorded the accrued interest on the bonds.
Transactions for 2001
Jan. 1 Recorded the interest payment.
Jul. 1 Recorded the interest payment.
Dec. 31 Recorded the accrued interest on the bonds.
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Hospitality Industry Managerial Accounting
Authors: Raymond S. Schmidgall
8th Edition
0866124977, 9780866124973
