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Problem 12-3 Tonic Company issues $400,000 of 10%, 5-year bonds on January 1, 2019 at 104. Interest is payable semi-annually on June 30 and
Problem 12-3 Tonic Company issues $400,000 of 10%, 5-year bonds on January 1, 2019 at 104. Interest is payable semi-annually on June 30 and December 31. Tonic has a calendar year end and uses the straight-line method of amortization. Prepare the journal entry for January 1, 2019. 1. 2. Prepare the journal entry for June 30, 2019. 3. Prepare the journal entry for December 31, 2019. 4. 5. Show how the bond would appear on the December 31, 2019 Balance Sheet. Prepare the amortization table for Tonic Company's bonds, using the following headings: Date/ Period Interest Amortization Payment of Premium Interest Expense Unamortized Premium Carrying Value 6. Prepare the journal entry for January 1, 2024 when the bond matures.
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