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Journalize cash received from the bond issue

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Reference no: EM132317005

Question

Golden Lake Company plans to raise the capital by issuing $700,000 of 9?%, six?-year bonds on January? 2, 2020. The bonds pay interest semiannually on June 30 and December 31.

The company receives $698,080 when the bonds are issued.The company also issues a mortgage payable for $250,000 on January? 2, 2020. The proceeds from the mortgage will be used to construct the new building.

The mortgage requires annual payments of $25,000 plus interest for ten ?years, payable on December 31. The mortgage interest rate is 9?%.

Help me journalize

1. Cash received from the bond issue.

2. Cash received from the mortgage payable.

3. Semiannual bond interest payments for 2020. Amortize the premium or discount using the? straight-line amortization method.

Start by recording the semiannual bond interest payment on June? 30, 2020.

4. Now record the semiannual bond interest payment on December? 31, 2020

5. Payment on the mortgage payable for 2020

Reference no: EM132317005

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