Journalize the issuance of the bonds

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Reference no: EM131881425

Problem

On January 1, Murphy, Inc., issues 7 percent, 20-year bonds with a face value of exist650,000 at 96. Interest is payable on June 30 and December 31.

Journalize the following entries:

a. Issuance of the bonds.
b. Payment of semiannual interest on June 30 and December 31.
c. Adjusting entry to amortize the discount on December 31, the companys year end.

Reference no: EM131881425

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