Solution-Prepare journal entries to record first two

Prepare journal entries to record first two interest payment

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Question: Simon issues four-year bonds with a $50,000 par value on June 1, 2011, at a price of $47,974. The annual contract rate is 7%, and interest is paid semiannually on November 30 and May 31.

1. Prepare an amortization table like the one in Exhibit for these bonds. Use the straight-line method of interest amortization.

2. Prepare journal entries to record the first two interest payments and to accrue interest as of December 31, 2011.

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Reference no: EM131534735

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Prepare journal entries to record first two interest payment

Reference no: EM131534735

Reference no: EM131534735

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