Fujiby Art Agency issued $60,000,000, 12% coupon, 8-year bond on 1/1/2016 at issue price
The rate is $66,502,572 and the effective interest rate is 10%. The interest payment dates are January 1st and July 1st of each year. Bae Yong Joon Records Straight-line amortization discount premium.
1. Entry of corporate bonds issued on January 1, 2016. (Please use the gross method to account)
2. Entry of interest payment and amortization discount on July 1, 2016 (assuming no entry of accrued interest was made on June 30, interest expense and discount The amount of premium amortization should be rounded up to the nearest whole number)

3. Adjusting entries due on 31 December 2016

Answer rating: 100% (QA)

1 Date Jan 1 2016 Cash General Journal Bonds Payable Premium on Bon... View the full answer