*P15-6C Proctor Company sold $6,000,000, 9%, 20-year bonds on January 1, 2016. The bonds were dated January 1, and pay interest annually on January 1. Proctor Company uses the straight-line method to amortize bond premium or discount. The bonds were sold at 96. Instructions (a) Prepare the journal entry to record the issuance of the bonds on January 1, 2016. (b) Prepare the journal entries for interest and the amortization of the discount in 2016 and 2017. (c) Show the balance sheet presentation (the bonds payable and the unamortized discount) of the bond liability at December 31, 2017.
*P15-6C Proctor Company sold $6,000,000, 9%, 20-year bonds on January 1, 2016. The bonds were dated January 1, and pay interest annually on January 1. Proctor Company uses the straight-line method to amortize bond premium or discount. The bonds were sold at 96.
Instructions
(a) Prepare the
(b) Prepare the journal entries for interest and the amortization of the discount in 2016 and 2017.
(c) Show the
*P15-7C Tyson Corporation sold $4,000,000, 8%, 10-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay interest annually on January 1. Tyson Corporation uses the straight-line method to amortize bond premium or discount.
Instructions
(a) Prepare the necessary journal entries to record the issuance of the bonds assuming that the bonds sold at 103.
(b) Prepare the journal entries for interest and the amortization of the premium in 2016 and 2017.
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