On the first day of its fiscal year, Ellis Company issued $12,000,000 of five-year, 10% bonds to
Question:
a. Journalize the entries to record the following:
1. Sale of the bonds.
2. First semiannual interest payment. (Amortization of discount is to be recorded annually.)
3. Second semiannual interest payment.
4. Amortization of discount at the end of the first year, using the straight-line method. (Round to the nearest dollar.)
b. Determine the amount of the bond interest expense for the first year.
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Related Book For
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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