Assume that the bonds in BE149 were issued at 98. Assume also that Grenier Limited records the

Question:

Assume that the bonds in BE14–9 were issued at 98. Assume also that Grenier Limited records the amortization using the straight-line method. Prepare the journal entries related to the bonds for
In BE Grenier Limited issued $300,000 of 10% bonds on January 1, 2011. The bonds are due on January 1, 2016, with interest payable each July 1 and January 1. The bonds are issued at face value. Prepare the company’s journal entries for
(a) January 1,
(b) July 1, and
(c) December 3