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Forman Company issued $800,000 of 10% 20-year bonds on January 1, 2011 at 102. Interest is payable semiannually on July 1 and January 1. Foreman Company uses the straight-line method of amortization for bond premium or discount.
Instructions
Prepare the journal entries to the following
(a) The issuance of the bonds
(b) The payment of interest and the related amortization on July 1, 2011
(c) The accrual of interest and the related amortization on December 31, 2011
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