On July 1, Johnson Corporation issued 6%, 12-year bonds with a face value of $100,000 for $62,350

Question:

On July 1, Johnson Corporation issued 6%, 12-year bonds with a face value of $100,000 for $62,350 because the current market rate is 12%. Record the following entries, assuming that the interest method is used to amortize the discount on bonds. Round discount to the nearest dollar.

a. Issuance of bonds.

b. Semiannual interest payment on December 31 and amortization of discount.

c. Semiannual interest payment on June 30 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... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...

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