INTERMEDIATE ACCOUNTING II- Exam 1a
Bond Sold at Premium or Discount between Interest date
On Jan. 1, 2021 ABC Corp. sold a 10 year 1,000,000 8% bonds dated Jan. 1, 2021 for $1,080,000. This bond pays interest semi-annually on July 1 and Dec. 31st
1. Pass Journal entry to set up bond sale
Pass Journal entry to record interest expense on July 1, 2021
3. Pass Journal entry to record interest expense on Dec. 31, 2021
On Jan 1, 2021, TDK Corp. sold a ten year 800,000 5% bonds dated Jan 1, 2021 for $724.000.
4 Pass Journal entry to set up bond sale
6. Pass Journal entry to record interest expense on July 1, 2021
Pass Journal entry to record interest expense on Dec. 31, 2021
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