On January 1, 201X, Leming Corporation sold $600,000 of 10%, 10-year bonds at 98. Interest is to be paid on June 30 and December 31. The straight-line method of amortizing the discount is used. Prepare
(1) An amortization schedule for the first three semiannual periods
(2) Journal entries to record the following:
a. Bond issue on January 1.
b. Semiannual interest payments on June 30 and December 31 for interest and amortization of discount.
c. If the bonds were issued on April 1 and interest was paid on November 1 and April 1, what would be the year-end adjusting entry on December 31 to record accrued interest and amortization of discount?

  • CreatedApril 24, 2014
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