Preparing journal entries-issuance of the bonds

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Swanson Corporation issued $7,100,000 of 20-year, 8 percent bonds on April 1, 2009, at 102. Interest is due on March 31 and September 30 of each year, and all of the bonds in the issue mature on March 31, 2029. Swanson's fiscal year ends on December 31. Prepare the following journal entries:

a. April 1, 2009, to record the issuance of the bonds.

b. September 30, 2009, to pay interest and to amortize the bond premium.

c. March 31, 2029, to pay

Reference no: EM13157215

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