On January 1 Dixon Corporation sold $400,000 of 10-year sinking fund bonds. The corporation expects to earn

Question:

On January 1 Dixon sold $400,000 of 10-year sinking fund bonds. The expects to earn 15% on the sinking fund balance and is required to deposit $23,000 at the end of each year with the trustee. Record the following entries:
a. The first deposit.
b. Earnings of $3,450 at the end of first period.
c. Payment of bondholders with sinking fund having a balance of $402,000.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...