On January 31, 2020, Courtenay Sports Cars issued 14-year, 7% bonds with a face value of $160,000. The bonds were issued at 91, and pay interest on January 31 and July 31. Courtenay amortizes bonds by the straight-line method Requirement Record (a) issuance of the bonds on January 31, (b) the semi-annual interest payment and discount amortization on July 31, and (c) the interest accrual anddiscount amortization on December 31.
On January 31, 2020, Courtenay Sports Cars issued 14-year, 7% bonds with a face value of $160,000. The bonds were issued at 91, and pay interest on January 31 and July 31. Courtenay amortizes bonds by the straight-line method Requirement Record (a) issuance of the bonds on January 31, (b) the semi-annual interest payment and discount amortization on July 31, and (c) the interest accrual anddiscount amortization on December 31.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 8RE
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On January 31, 2020, Courtenay Sports Cars issued 14-year, 7% bonds with a face value of $160,000. The bonds were issued at 91, and pay interest on January 31 and July 31. Courtenay amortizes bonds by the straight-line method
Requirement
Record (a) issuance of the bonds on January 31, (b) the semi-annual interest payment and discount amortization on July 31, and (c) the interest accrual anddiscount amortization on December 31.
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