On June 30, 2025, George Robinson Company issued $4,470,000.00 face value of 14%, 20-year bonds at...
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On June 30, 2025, George Robinson Company issued $4,470,000.00 face value of 14%, 20-year bonds at $5,142,560.00, a yield of 12%. Robinson uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and -December 31. Prepare the journal entries to record the following transactions. 1. The issuance of the bonds on June 30, 2025. 2. The payment of interest and the amortization of the premium on December 31, 2025. The payment of interest and the amortization of the premium on June 30, 2026. 3. 4. The payment of interest and the amortization of the premium on December 31, 2026. On June 30, 2025, George Robinson Company issued $4,470,000.00 face value of 14%, 20-year bonds at $5,142,560.00, a yield of 12%. Robinson uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and -December 31. Prepare the journal entries to record the following transactions. 1. The issuance of the bonds on June 30, 2025. 2. The payment of interest and the amortization of the premium on December 31, 2025. The payment of interest and the amortization of the premium on June 30, 2026. 3. 4. The payment of interest and the amortization of the premium on December 31, 2026.
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To record the transactions related to the issuance of bonds and subsequent interest payments and amo... View the full answer
Related Book For
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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