During two consecutive years, Benson Corporation completed the following transactions: Year 1 Jan. 2 Issued $ 3,400,000
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Year 1
Jan. 2 Issued $ 3,400,000 face value, 10-year, 8 percent bonds, dated January 1 of this year, at 106. Interest is payable semiannually on June 30 and December 31.
June 30 Paid semiannual interest on the bonds.
Dec. 31 Paid semiannual interest on the bonds.
31 Recorded an adjusting entry for amortization of premium on bonds.
31 Closed the Interest Expense account.
Year 2
June 30 Paid semiannual interest on the bonds. Dec. 31 Paid semiannual interest on the bonds.
31 Recorded an adjusting entry for amortization of premium on bonds.
31 Closed the Interest Expense account.
Required
Record the transactions in general journal form.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille
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