On January 1, 2012, Pedraza Corporation issued $1,000,000 face value, 6%, 10-year bonds at $1,077,217. This price
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Question:
Instructions
(Round all computations to the nearest dollar.)
(a) Prepare the journal entry to record the issuance of the bonds on January 1, 2012.
(b) Prepare an amortization table through December 31, 2014 (three interest periods) for this bond issue.
(c) Prepare the journal entry to record the accrual of interest and the amortization of the premium on December 31, 2012.
(d) Prepare the journal entry to record the payment of interest on January 1, 2013.
(e) Prepare the journal entry to record the accrual of interest and the amortization of the premium on December 31, 2013.
Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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