Question: Ramos Travel Co issued the following bonds at a premium

Ramos Travel Co. issued the following bonds at a premium
Date of issue and sale.... April 1, 20-1
Principal amount: .... $600,000
Sale price of bonds: ... 104
Denomination of bonds: .. $1,000
Life of bonds: ...... 20 years
Stated rate: ........ 9%, payable semiannually on September 30 and March 31
Prepare journal entries for:
(a) Issuance of the bonds at a premium.
(b) Interest payment and premium amortization on the bonds on September 30.
(c) Year-end adjustment on the bonds.

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  • CreatedJune 07, 2014
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