Plantation Company issued the following bonds at a premium: Date of issue and sale....March 1, 20-1 Principal

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Plantation Company issued the following bonds at a premium:

Date of issue and sale....March 1, 20-1

Principal amount: ....$700,000

Sale price of bonds: ...103

Denomination of bonds: ..$1,000

Life of bonds: ......10 years

Stated rate: ........9%, payable semiannually on August 31 and February 28

REQUIRED

Prepare journal entries for:

(a) Issuance of the bonds.

(b) Interest payment and premium amortization on the bonds on August 31, 20-1.

(d) Reversing entry for the beginning of 20-2.

(e) Redemption of $50,000 of the bonds on March 1, 20-6, at 106.

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College Accounting Chapters 1-15

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21st Edition

Authors: James Heintz

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Question Posted: Jun 07, 2014 03:59 AM

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Plantation Company issued the following bonds at a premium: Date of issue and sale....March 1, 20-1 Principal

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GENERAL JOURNAL PAGE date description post ref debit credit 1 201 Mar 1 Cash 721 0 0 0 00 1 2 Premiu...View the full answer

College Accounting Chapters 1-15

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