On January 1, 2012, Hampton, Inc issues $3 million of 5 year, 10 bonds with interest payable on July 1 and January 1 Hampton prepares financial statements on December 31 and amortizes any discount or premium using the straight line method Required Prepare all journal entries necessary in 2012 assum...

a General Journal Date Account Names and Explanation Debit Credit 2012 Jan 1 Cas ...

On January 1, 2012, Hampton, Inc. issues $3 million of 5-year, 10% bonds with interest payable on

Question:

On January 1, 2012, Hampton, Inc. issues $3 million of 5-year, 10% bonds with interest payable on July 1 and January 1. Hampton prepares on December 31 and amortizes any discount or premium using the straight-line method.
Required
Prepare all journal entries necessary in 2012 assuming the bonds were issued at
(a) 96
(b) 103. Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...