Mcgee company issued 400000 of 8 20-year bonds on january 1

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McGee Company issued $400,000 of 8%, 20-year bonds on January 1, 2014, at 102. Interest is payable semiannually on July 1 and January 1. McGee Company uses the straight-line method of amortization for bond premium or discount.

Instructions

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, 2014.

(c) The accrual of interest and the related amortization on December 31, 2014.

Reference no: EM13391283

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