Question

San Mateo Company issues 7%, five-year bonds dated January 1, 2009, with a $220,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $229,385. Their annual market rate is 6% on the issue date.
Required
1. Calculate the total bond interest expense over the bonds’ life.
2. Prepare a straight-line amortization table like Exhibit for the bonds’ life.
3. Prepare the journal entries to record the first two interest payments.


$1.99
Sales0
Views51
Comments0
  • CreatedMarch 18, 2015
  • Files Included
Post your question
5000