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29 Sep 2019
Rico company issued $400,000, 9%, 20 year bonds on january 1,2017, at 103. Interest is payable annually on January 1. Rico usesstraight-line amortization for bond premium or discount.
Instructions
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Prepare the journal entries to record the following.
a) The issuance of the bonds
b) The accrual of interest and the premium amortization ondecember 31, 2017
c) The payment of interest on january 1, 2018
d) The redemption of the bonds at maturity, assuming interestfor the last interest period has been paid and recorded.
Rico company issued $400,000, 9%, 20 year bonds on january 1,2017, at 103. Interest is payable annually on January 1. Rico usesstraight-line amortization for bond premium or discount.
Instructions
Show WORK
Prepare the journal entries to record the following.
a) The issuance of the bonds
b) The accrual of interest and the premium amortization ondecember 31, 2017
c) The payment of interest on january 1, 2018
d) The redemption of the bonds at maturity, assuming interestfor the last interest period has been paid and recorded.
Sixta KovacekLv2
29 Sep 2019
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| 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 | ||||||
