Question
Wildhorse Company sold $3,100,000, 6%, 10-year bonds on January 1, 2020. The bonds were dated January 1, 2020 and pay interest annually on January 1.
Wildhorse Company sold $3,100,000, 6%, 10-year bonds on January 1, 2020. The bonds were dated January 1, 2020 and pay interest annually on January 1. Wildhorse Company uses the straight line method to amortize bond premium or discount.
(A) Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2020, assuming that the bonds sold at 102.
(B) Prepare all the necessary journal entries to record the issuance of the bonds and the bond interest expense for 2020, assuming that the bonds are sold at 96.
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