bonds for $102,458.71 to yield 12%. Prepare the journal entries to record: a. the sale of the bonds b. each 2019 semiannual interest payment and premium amortization, using the effective interest method 2. Assume the company sells the bonds for $97,616.71 to yield 14%. Prepare the journal entries to
bonds for $102,458.71 to yield 12%. Prepare the journal entries to record: a. the sale of the bonds b. each 2019 semiannual interest payment and premium amortization, using the effective interest method 2. Assume the company sells the bonds for $97,616.71 to yield 14%. Prepare the journal entries to
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Effective Interest Amortization of Premium or Discount
Instructions
Chart of Accounts
General Journal
X
Instructions
Taylor Company issued $100,000 of 13% bonds on January 1, 2019. The bonds pay interest semiannually on June 30 and December 31 and are due December 31, 2021.
Required:
| 1. | Assume the company sells the bonds for $102,458.71 to yield 12%. Prepare the |
| a. | the sale of the bonds |
| b. | each 2019 semiannual interest payment and premium amortization, using the effective interest method |
| 2. | Assume the company sells the bonds for $97,616.71 to yield 14%. Prepare the journal entries to record: |
| a. | the sale of the bonds |
| b. | each 2019 semiannual interest payment and discount amortization, using the effective interest method |
| 1. | Assume the company sells the bonds for $102,458.71 to yield 12%. Prepare the journal entries to record: |
| a. | the sale of the bonds |
| b. | each 2019 semiannual interest payment and premium amortization, using the effective interest method |
General Journal Instructions
PAGE 1
GENERAL JOURNAL
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| 2. | Assume the company sells the bonds for $97,616.71 to yield 14%. Prepare the journal entries to record: |
| a. | the sale of the bonds |
| b. | each 2019 semiannual interest payment and discount amortization, using the effective interest method |
General Journal Instructions
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GENERAL JOURNAL
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