Question

Plantation Company issued the following bonds at a premium:
Date of issue and sale.... March 1, 20-1
Principal amount: .... $700,000
Sale price of bonds: ... 103
Denomination of bonds: .. $1,000
Life of bonds: ...... 10 years
Stated rate: ........ 9%, payable semiannually on August 31 and February 28

REQUIRED
Prepare journal entries for:
(a) Issuance of the bonds.
(b) Interest payment and premium amortization on the bonds on August 31, 20-1.
(c) Year-end adjustment on the bonds for 20-1.
(d) Reversing entry for the beginning of 20-2.
(e) Redemption of $50,000 of the bonds on March 1, 20-6, at 106.



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  • CreatedJune 07, 2014
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