BONDS ISSUED AT A PREMIUM Velez Entertainment Co. issued the following bonds at a premium: Date of

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BONDS ISSUED AT A PREMIUM Velez Entertainment Co. issued the following bonds at a premium:

Date of issue and sale: .........April 1, 20-1

Principal amount: ...........$500,000

Sale price of bonds: ..........104

Denomination of bonds: .........$1,000

Life of bonds: ..............20 years

Stated rate: .............10%, payable semiannually on

..................September 30 and March 31

Prepare journal entries for:

(a) Issuance of the bonds at a premium.

(b) Interest payment and premium amortization on the bonds on September 30.

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College Accounting

ISBN: 978-0538745192

20th Edition

Authors: Heintz and Parry

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Question Posted: Dec 20, 2011 10:42 AM

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BONDS ISSUED AT A PREMIUM Velez Entertainment Co. issued the following bonds at a premium: Date of

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DATE 201 Apr 1 Cash DESCRIPTION GENERAL JOURNAL Bonds Payable Premium on Bonds ...View the full answer

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