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Problem 3. Celine Dion Company issued $600,000 of 10% 20 -year bonds on January 1, 2014, at 102 Interest is payable semiannually on July 1
Problem 3. Celine Dion Company issued $600,000 of 10% 20 -year bonds on January 1, 2014, at 102 Interest is payable semiannually on July 1 and January 1. Dion Company uses the straight-line method of amortization for bond premium or discount. Instructions: Prepare the journal entries to record the following. (a) The issuance of the bonds. Jan 1, 14 Account Title Amount Account Title Account Title Formula Formula (b) The payment of interest and related amortization on July 1, 2014. Jul 1, 14 Account Title Account Title Account Title Formula Formula Formula (c) The accrual of interest and the related amortization on December 31, 2014. Dec 31, 14 Account Title Account Title Account Title Formula Formula Formula
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