Question: Refer to the bond details in problem in problem kelly issues

Refer to the bond details in Problem.
In Problem, Kelly issues $315,000 of 4%, 15-year bonds dated January 1, 2009, that pays interest semiannually on June 30 and December 31. They are issued at $253,263, and their market rate is 6% at the issue date.
Required
1. Prepare the January 1, 2009, journal entry to record the bonds’ issuance.
2. Determine the total bond interest expense to be recognized over the bonds’ life.
3. Prepare an effective interest amortization table like the one in Exhibit for the bonds’ first two years.
4. Prepare the journal entries to record the first two interest payments.

View Solution:


Sale on SolutionInn
Sales0
Views85
Comments
  • CreatedMarch 18, 2015
  • Files Included
Post your question
5000