Question
Stephanie Ram Corporation have a $700,000 bond issue dated February 1, 2016 due in 10 years with an annual interest rate of 12%. Interest is
Stephanie Ram Corporation have a $700,000 "bond issue" dated February 1, 2016 due in 10 years with an annual interest rate of 12%. Interest is payable February 1 and August 1. On April 1, 2016, the bond was sold for $664,600 plus accrued interest.
Using the straight-line method, prepare the general journal entries for each of the following:
| a) | The issuance of the bond on April 1, 2016. |
| b) | Payment of the semi-annual interest and the amortization of the discount on August 1, 2016. |
| c) | Accrual of the interest and the amortization of the discount on December 31, 2016. |
| d) | Payment of the semi-annual interest and the amortization of the discount on February 1, 2017. |
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Law, Business And Society
Authors: Tony McAdams, Kiren Dosanjh Zucker, Kristofer Neslund, Kari Smoker
12th Edition
1259721884, 978-1259721885
