Kingbird Company issued $684,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is payable
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Kingbird Company issued $684,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is payable semiannually on July 1 and January 1. Kingbird 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. | |
(b) | The payment of interest and related amortization on July 1, 2020. | |
(c) | The accrual of interest and the related amortization on December 31, 2020. |
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