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Walker Corporation issued 8%, five-year bonds with a par value of $5,500,000 on January 1, 2017. Interest is to be paid semiannually on each June
Walker Corporation issued 8%, five-year bonds with a par value of $5,500,000 on January 1, 2017. Interest is to be paid semiannually on each June 30 and December 31. The bonds were issued at $5,250,000 cash. (a) Prepare the general journal entry to record the issuance of the bonds on January 1, 2017. (b) Show how the bonds would be reported on Walker's balance sheet at January 1, 2017. (c) Assume instead that Walker uses the straight-line method for amortizing any discount or premium on bonds. Prepare the general journal entry to record the first semiannual interest payment on June 30, 2017. (d) Prepare the journal entry to retire the bonds on June 30, 2019 for $5,350,000
Walker Corporation issued 8%, five-year bonds with a par value of $5,500,000 on January 1, 2017. Interest is to be paid semiannually on each June 30 and December 31. The bonds were issued at $5,250,000 cash.
(a) Prepare the general journal entry to record the issuance of the bonds on January 1, 2017.
(b) Show how the bonds would be reported on Walker's balance sheet at January 1, 2017.
(c) Assume instead that Walker uses the straight-line method for amortizing any discount or premium on bonds. Prepare the general journal entry to record the first semiannual interest payment on June 30, 2017.
(d) Prepare the journal entry to retire the bonds on June 30, 2019 for $5,350,000
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