Assume the same information as in E14-4, except that the bonds were issued at 84.95 to yield 12%.

Instructions Prepare the journal entries to record the following. (Round to the nearest euro.)

(a) The issuance of the bonds.

(b) The payment of interest and related amortization on July 1, 2015.

(c) The accrual of interest and the related amortization on December 31, 2015.

Data From E14-4

Foreman Company issued €800,000 of 10%, 20-year bonds on January 1, 2015, at 119.792 to yield 8%. Interest is payable semiannually on July 1 and January 1.

Instructions
Prepare the journal entries to record the following.
(a) The issuance of the bonds.
(b) The payment of interest and the related amortization on July 1, 2015.
(c) The accrual of interest and the related amortization on December 31, 2015.