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Foreman Company issued $800,000 of 10%, 20-year bonds on January 1, 2012, at 119.792 to yield 8%. Interest is payable semiannually on July 1 and January 1.
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, 2012.(c) The accrual of interest and the related amortization on December 31, 2012.
Purpose a Statement of Revenues, Changes and Expenditures in Fund Balance for the debt service fund
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