On January 1, 201X, Lemming Corporation sold $480,000 of 6%, 10-year bonds at 96. Interest is to

Question:

On January 1, 201X, Lemming Corporation sold $480,000 of 6%, 10-year bonds at 96. Interest is to be paid on June 30 and December 31. The straight-line method of amortizing the discount is used. Prepare

(1) an amortization schedule for the first three semiannual periods and

(2) journal entries to record the following:

a. Bond issue on January 1.

b. Semiannual interest payments on June 30 and December 31 for interest and amortization of discount.

c. If the bonds were issued on June 1 and interest was paid on December 1 and June 1, what would be the year-end adjusting entry on December 31 to record accrued interest and amortization of discount?

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...

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