Sehr Company issued $500,000, 6%, 30-year bonds on January 1, 2022, at 103. Interest is payable annually
Question:
Sehr Company issued $500,000, 6%, 30-year bonds on January 1, 2022, at 103. Interest is payable annually on January 1. Sehr uses straight-line amortization for bond premium or discount.
Instructions Prepare the journal entries to record the following events.
a. The issuance of the bonds.
b. The accrual of interest and the premium amortization on December 31, 2022.
c. The payment of interest on January 1, 2023.
d. The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.
Step by Step Answer:
2022 a Jan 1 Cash 500000 X 103 515000 Bonds Payable 500000 Premiu...View the full answer
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119493631
9th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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