Reference no: EM132629989
Question - On January 1, 2018, Nebal Manufacturing Corporation issued $5,000,000, 10%, 6-year bonds dated January 1, 2018, at 105. The bonds pay semi-annual interest on January 1 and July 1. The company uses the straight-line method of amortization and has a December 31, year end.
Instructions - Prepare the journal entries to record the following:
The issuance of bonds on January 1, 2018.
The payment of interest and the discount (or premium) amortization on July 1, 2018.
The accrual of interest and the discount (or premium) amortization on December 31, 2018.
The payment of interest on January 1, 2019.
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