Celine Dion Company issued $1,200,000 of 12%, 10-year bonds on January 1, 2017, at 103. Interest is
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Celine Dion Company issued $1,200,000 of 12%, 10-year bonds on January 1, 2017, at 103. Interest is payable semiannually on July 1 and January 1. Dion Company uses the effective interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705%.
Prepare the journal entries to record the following:
(a) The issuance of the bonds. Jan 1, 2017.
(b) The payment of interest and related amortization on July 1, 2017.
(c) The accrual of interest and the related amortization on December 31, 2017.
Expert Answer:
Date Particular Debit in Credit in 1 Jan 2017 Cash WN 1 1236000 Premium on bonds payable 12360001200... View the full answer
Related Book For 
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
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