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28 Sep 2019
Celine Dion Company issued $1,200,000 of 12% 10 year bonds on January 1, 2017 at 103 Interest is payable semiannually on July 1 and January 1. Dion Company uses the effective interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705% (market interest rate at issurance). Instructions: Prepare the journal entries to record the following. (Round to the nearest dollar.) (a) The issuance of the bonds. Jan 1, 17 (b) The payment of interest and related amortization on July 1, 2017. Jul 1, 17 (c) The accrual of interest and the related amortization on December 31, 2017. Dec 31, 17
| Celine Dion Company issued | $1,200,000 | of | 12% | 10 | year bonds on | |
| January 1, 2017 at | 103 | Interest is payable semiannually on July 1 and January 1. | ||||
| Dion Company uses the effective interest method of amortization for bond premium or discount. | ||||||
| Assume an effective yield of | 9.7705% | (market interest rate at issurance). | ||||
| Instructions: | ||||||
| Prepare the journal entries to record the following. (Round to the nearest dollar.) | ||||||
| (a) The issuance of the bonds. | ||||||
| Jan 1, 17 | ||||||
| (b) The payment of interest and related amortization on July 1, 2017. | ||||||
| Jul 1, 17 | ||||||
| (c) The accrual of interest and the related amortization on December 31, 2017. | ||||||
| Dec 31, 17 | ||||||
Collen VonLv2
30 Sep 2019
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