Question: Golden Inc issues 4 million 5 year 10 bonds at 102

Golden Inc. issues $4 million, 5-year, 10% bonds at 102, with interest payable on July 1 and January 1. The straight-line method is used to amortize bond premium.
(a) Prepare the journal entry to record the sale of these bonds on January 1, 2014.
(b) Prepare the journal entry to record interest expense and bond premium amortization on July 1, 2014, assuming no previous accrual of interest.


View Solution:


Sale on SolutionInn
Sales4
Views287
Comments
  • CreatedJanuary 30, 2014
  • Files Included
Post your question
5000