Accrual of interest and amortization of bond discount

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On August 1, Stuart Co. issued $1,300,000 of 20-year, 9% bonds, dated August 1, for $1,225,000. Interest is payable semiannually on February 1 and August 1. Present the entries to record the following transactions for the current year:

(a) Issuance of the bonds.

(b) Accrual of interest and amortization of bond discount for the year, on December 31, using the straight-line method.

Reference no: EM13154959

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