Amortization for bonds accounting and interest expense

Reference no: EM1315905

Amortization for Bonds accounting and interest expense on bonds calculations.

On January 1, 2002, Leary Corporation issued $800,000, 9%, 5-year bonds dated January 1, 2002, at 96. The bonds pay semiannual interest on January 1 and July 1. The company uses the straight-line method of amortization and has a calendar year end. (15 points)

INSTRUCTIONS

Prepare all the journal entries that Leary Corporation would make related to this bond issue through January 1, 2003. Be sure to indicate the date on which the entries would be made.

Reference no: EM1315905

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