Prepare journal entries - semiannual interest payment entry

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Question - ABC Corporation issued $200,000 of 10-year, 4% bonds on March 1, 200X. The bonds sold for $210,000. Interest is payable semiannually. The company uses straight-line amortization for bond discounts and premiums. Prepare the following journal entries:

a. The issuance of the bonds on March 1

b. The semiannual interest payment entry and entry to record amortization

Question - The XYZ Corporation issued $600,000 of 5-year, 3% bonds on October 1, 200X. The bonds pay interest semiannually. The bonds sold for $585,000 on October 1. The company uses straight-line amortization for bond discounts and premiums. Prepare the following journal entries:

a. The issuance of the bonds on October 1

b. The semiannual interest payment entry and entry to record amortization.

Reference no: EM131800031

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