On May 1, 201X, Lester Corporation issued $400,000 of 24%, 20-year bonds at 109. The interest is

Question:

On May 1, 201X, Lester Corporation issued $400,000 of 24%, 20-year bonds at 109. The interest is payable on November 1 and May 1. The premium is amortized by the straight-line method. Prepare an amortization schedule for the first three semiannual periods and journalize the following transactions:

201X

May 1 Bonds issued.

Nov. 1 Paid semiannual interest and amortized premium.

Dec. 31 Accrued bond interest and amortized premium.

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...