Cannon Corporation had the following bond transactions during the fiscal year 2016: 

a. On January 1: issued ten $1,000 bonds at 102. The 5-year bonds is dated January 1, 2016. The contract interest rate is 6%. The straight-line amortization method is used. Interest is payable semi-annual on January 1 and July 1. 

b. On July 1: Cannon Corporation issued $500,000 of 10%, 10-year bonds. The bonds dated January 1, 2016, were issued at 88.5, and pay interest on July 1 and January 1. Effective interest rate for these bonds is 12%. Straight-line amortization method is used. 

c. On October 1: issued 10-year bonds $10,000 face value bonds, for $10,853 cash. The bonds have a stated rate of 9%, but an effective rate of 6%. Straight-line amortization method is used. Interest is payable on October 1 and April 1.

 __Prepare all general journal entries for the three bonds issued and any interest accruals and payments for the fiscal year 2016. (Round all calculations to the nearest whole dollar.)__

Answer rating: 100% (QA)

Answer Date Particulars Debit Credit 1Jan Cash 10200 6 Bonds Payable 10000 The premium on Bonds Paya... View the full answer