Prophet Company issued $500,000, 6%, 30-year bonds on January 1, 2014, at 103. Interest is payable annually
Question:
Instructions
Prepare the journal entries to record the following events.
(a) The issuance of the bonds.
(b) The accrual of interest and the premium amortization on December 31, 2014.
(c) The payment of interest on January 1, 2015.
(d) The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.
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2014 a Jan 1 Cash 500000 X 103 515000 Bonds Payable 500000 Premium ...View the full answer
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Related Book For
Accounting Tools for Business Decision Making
ISBN: 978-1118128169
5th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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