On March 1, 2011, Fast Freight Company sold $400,000 of its 9 percent, 20-years bonds at 109.9.
Question:
On March 1, 2011, Fast Freight Company sold $400,000 of its 9 percent, 20-years bonds at 109.9. The semiannual interest payment dates are March 1 and September 1. The market interest rate is 8 percent. The firm’s fiscal year ends august 31. Prepare entries in journal form the record the sale of the bonds on March 1, the accrual of interest and amortization of premium on August 31, and the first interest payment on September 1. Use the effective interest method to amortize the premium.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: