**Bond Transactions Journalization Example**The issue price of the bonds is 92. Journalize the following bond transactions:a. **Issuance of the bonds on January 1, 2018.**b. **Payment of interest and amortization on June 30, 2018.**c. **Payment of interest and amortization on December 31, 2018.**d. **Retirement of the bond at maturity on December 31, 2037, assuming the last interest payment has already been recorded.** On January 1, 2018, Nurses Credit Union (NCU) issued 8%, 20-year bonds payable with a face value of $600,000. The bonds pay interest on June 30 and December 31.Read the requirements.

Discount on Bonds Payable = Face value of Bonds - Issue price = $600000 - $552000 = $48000

Answered: On January 1, 2018, Nurses Credit Union…

On January 1, 2018, Nurses Credit Union (NCU) issued 8%, 20-year bonds payable with face value of $600,000. The bonds pay interest on June 30 and December 31. Read the (equirement

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

**Bond Transactions Journalization Example**

The issue price of the bonds is 92. Journalize the following bond transactions:

a. **Issuance of the bonds on January 1, 2018.**

b. **Payment of interest and amortization on June 30, 2018.**

c. **Payment of interest and amortization on December 31, 2018.**

d. **Retirement of the bond at maturity on December 31, 2037, assuming the last interest payment has already been recorded.**

On January 1, 2018, Nurses Credit Union (NCU) issued 8%, 20-year bonds payable with a face value of $600,000. The bonds pay interest on June 30 and December 31.

Read the requirements.

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