The following transactions are taken from the records of the Elton Corporation. Prepare journal entries for the
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The following transactions are taken from the records of the Elton Corporation. Prepare journal entries for the transactions for the following:
a. Bonds payable with a par value of $800,000, carrying a stated interest rate of 9% payable semiannually on March 1 and September 1, were issued on June 1, 2014, at 102.5 plus accrued interest. The bonds are dated March 1, 2014 and mature on March 1, 2024.
b. September 1 interest payment is made. (Bond premium amortization is recorded only at year end.)
c. Year-end (December 31) accrued interest on bonds payable is recorded and the bond premium is amortized using the straight-line method.
d. March 1 interest payment is made.
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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