The Colson Company issued $300,000 of 10% bonds on January 1, 2011. The bonds are due January

Question:

The Colson Company issued $300,000 of 10% bonds on January 1, 2011. The bonds are due January 1, 2016, with interest payable each July 1 and January 1. The bonds are issued at face value. Prepare Colson’s journal entries for

(a) The January issuance,

(b) The July 1 interest payment, and

Bonds
When companies need to raise money, issuing bonds is one way to do it. A bond functions as a loan between an investor and a corporation. The investor agrees to give the corporation a specific amount of money for a specific period of time in exchange...