On January 1, 2011, Cougar Creations Inc. purchased $100,000 of 5-year, 8% bonds when the effective rate
Question:
On January 1, 2011, Cougar Creations Inc. purchased $100,000 of 5-year, 8% bonds when the effective rate of interest was 10%, paying $92,277. Interest is to be paid on July 1 and December 31.
1. Prepare an interest amortization schedule for the bonds.
2. Prepare the journal entries made by Cougar Creations on July 1 and December 31 of 2011 to recognize the receipt of interest and to amortize the discount.
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1 Amortization Schedule Interest Interest Received Revenue 005 Bond Interest 004 Carrying Discount U...View the full answer
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Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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