Question: On January 1 201X Lemming Corporation sold 500 000 of 12

On January 1, 201X, Lemming Corporation sold $500,000 of 12%, 10-year bonds at 94. 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 June 1 and interest was paid on December 1 and June 1, what would be the year-end adjusting entry on December 31 to record accrued interest and amortization of discount?

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  • CreatedApril 24, 2014
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