Question: Johnson Company sold for 90 000 a 102 400 two year zero coupon

Johnson Company sold for $90,000 a $102,400, two-year zero coupon bond on December 31, 2011. The bond matures on December 31, 2013.

Required:
1. Prepare the entry to record the issuance of the bond.
2. Prepare the adjustment to recognize 2012 interest expense.
3. Prepare the entry to recognize the 2013 interest expense and the repayment of the bond on December 31, 2013.

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  • CreatedSeptember 22, 2015
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