Fong Corporation sold $2,000,000, 7 , 5 year bonds on January 1, 2017 The bonds were dated January 1, 2017, and pay interest on January 1 Fong Corporation uses the straight line method to amortize bond premium or discount Instructions (a) Prepare all the necessary journal entries to record the issu...

a Jan 1 Cash 2000000 X 102 2040000 Bonds Payable 2000000 Premium on Bonds Payable 40000 Dec ...

Fong Corporation sold $2,000,000, 7%, 5-year bonds on January 1, 2017. The bonds were dated January 1,

Question:

Fong sold $2,000,000, 7%, 5-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay interest on January 1. Fong uses the straight-line method to amortize bond premium or discount.
Instructions
(a) Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2017, assuming that the bonds sold at 102.
(b) Prepare journal entries as in part (a) assuming that the bonds sold at 97.
(c) Show the presentation for the bond issue at December 31, 2017, using (1) the 102 selling price, and then (2) the 97 selling price.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...