Motley Company issued $300,000, 8%, 15-year bonds on December 31, 2024, for $288,000. Interest is payable annually
Question:
Motley Company issued $300,000, 8%, 15-year bonds on December 31, 2024, for $288,000. Interest is payable annually on December 31. Motley uses the straight-line method to amortize bond premium or discount.
Instructions
Prepare the journal entries to record the following events.
a. The issuance of the bonds.
b. The payment of interest and the discount amortization on December 31, 2025.
c. The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.
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Related Book For
Financial Accounting Tools For Business Decision Making
ISBN: 9781119791089
10th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Jill E. Mitchell
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