Prepare the journal entries to record issuance of the bonds

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Reference no: EM13177703

Foreman Company issued $800,000 of 10%, 20-year bonds on January 1, 2012, at 119.792 to yield 8%. Interest is payable semiannually on July 1 and January 1.

Instructions

Prepare the journal entries to record the following.

(a) The issuance of the bonds.

(b) The payment of interest and the related amortization on July 1, 2012.

Reference no: EM13177703

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