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Celine Dion Company issued $600,000 of 10% 20-year bonds on January 1, 2008, at 102. Interest is payable semiannually on July 1 and January 1. Dion Company uses the straight line method of amortization for bond premium or discount.
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, 2008.c) The accrual of interest and the related amortization on December 31, 2008
Income - Extraordinary Income Accounting, Cash dividends, Stock splits, Cumulative dividends, Issue of Bonds, Bond types and Bond prices.
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