Gardner Corporation issues $1,750,000, 10-year, 12% bonds on January 1, 2014, at $1,968,090, to yield 10%. The
Question:
Gardner Corporation issues $1,750,000, 10-year, 12% bonds on January 1, 2014, at $1,968,090, to yield 10%. The bonds pay semiannual interest July 1 and January 1. Gardner uses the effective-interest method of amortization.
Instructions
(a) Prepare the journal entry to record the issuance of the bonds.
(b) Prepare the journal entry to record the payment of interest on July 1, 2014.
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a 2014 Jan 1 b 2014 July 1 Cash Bonds Payable Premium on Bo...View the full answer
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Related Book For
Financial And Managerial Accounting
ISBN: 9781118004234
1st Edition
Authors: Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt
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