On October 1, 2017, Noller Company issued a 10%, 10-year bond with a nominal value of $8,000,000, dated July 1, 2017, with semi-annual interest payments on January 1 and July 1. Bonds $9,084,000 (with 8% yield) plus accrued interest. Effective interest method is used.
Prepare the journal entry on the date the bonds are issued.
Prepare the correction entry on December 31, 2017, the end of the fiscal year.
Prepare the entry for the interest payment on January 1, 2018.

Answer rating: 100% (QA)

1 Journal Entry on the Date the Bonds are Issued October 1 2017 When the bonds are issued Noller Company receives cash from investors and it creates a ... View the full answer