Beatrice Corporation sold ($ 1,500,000,8 %, 10)-year bonds on January 1, 1996. The bonds were dated January
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Beatrice Corporation sold \(\$ 1,500,000,8 \%, 10\)-year bonds on January 1, 1996. The bonds were dated January 1, 1996, and pay interest on July 1 and January 1. Beatrice Corporation uses the straight-line method to amortize bond premium or discount. Assume no interest is accrued on June 30.
\section*{Instructions}
(a) Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 1996 , assuming that the bonds sold at 102 .
(b) Prepare journal entries as in part
(a) assuming that the bonds sold at 97.
(c) Show balance sheet presentation for each bond issue at December 31, 1996.
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Related Book For
Financial Accounting
ISBN: 9780471169208
2nd Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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