Gridley Ltd. issued 800,000, 11%, 10-year bonds on December 31, 2016, for 730,000. Interest is payable annually
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Question:
Gridley Ltd. issued £800,000, 11%, 10-year bonds on December 31, 2016, for £730,000. Interest is payable annually on December 31. Gridley uses the straight-line method to amortize bond premium or discount.
Instructions
Prepare the journal entries to record the following.
(a) The issuance of the bonds.
(b) The payment of interest and the discount amortization on December 31, 2017.
(c) The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.
Related Book For
Financial Accounting
ISBN: 978-1118978085
IFRS 3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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