Coates Inc. issues $3 million, 5-year, 10% bonds at 102, with interest payable on July 1 and

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Coates Inc. issues $3 million, 5-year, 10% bonds at 102, with interest payable on July 1 and January 1.The straight-line method is used to amortize bond premium.

(a) Prepare the journal entry to record the sale of these bonds on January 1, 2010.

(b) Prepare the journal entry to record interest expense and bond premium amortization on July 1, 2010, assuming no previous accrual of interest.

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Accounting Principles

ISBN: 978-0470533475

9th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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Question Posted: Sep 13, 2011 08:40 AM

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Coates Inc. issues $3 million, 5-year, 10% bonds at 102, with interest payable on July 1 and

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a Cash 102 X 3000000 3060000 Bonds Payab...View the full answer

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