Question
Prepare journal entries to record the following transactions relating to long-term bonds of Kirby, Inc. On June 1, 2017, Kirby, Inc. issued $600,000, 6% bonds
Prepare journal entries to record the following transactions relating to long-term bonds of Kirby, Inc.
On June 1, 2017, Kirby, Inc. issued $600,000, 6% bonds for $582,000, including accrued interest of $12,000. Interest is payable semiannually on February 1 and August 1 with the bonds maturing on February 1, 2019. The bonds are callable at 102.
On August 1, 2017, Kirby paid interest on the bonds and recorded amortization. Kirby uses straight-line amortization.
On June 1, 2017, Kirby issued $600,000, 6% bonds for $618,000, including accrued interest of $12,000. Interest is payable semiannually on February 1 and August 1 with the bonds maturing on February 1, 2019. The bonds are callable at 102.
On August 1, 2017, Kirby paid interest on the bonds and recorded amortization. Kirby uses straight-line amortization.
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