Manilow Company issued $700,000, 9%, 20-year bonds on January 1, 2014, at 103. Interest is payable semiannually
Question:
Manilow Company issued $700,000, 9%, 20-year bonds on January 1, 2014, at 103. Interest is payable semiannually on July 1 and January 1. Manilow uses straight-line amortization for bond premium or discount.
Instructions
Prepare the journal entries to record the following.
(a) The issuance of the bonds.
(b) The payment of interest and the premium amortization on July 1, 2014, assuming that interest was not accrued on June 30.
(c) The accrual of interest and the premium amortization on December 31, 2014.
(d) The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.
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a Jan 1 Cash 700000 X 103 721000 Premium on Bonds Payable 21000 Bonds Payabl...View the full answer
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Related Book For 
Financial and managerial accounting
ISBN: 978-1118016114
1st edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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